The HCM City Department of Industry and Trade said it will offer a credit support package worth VND70 trillion (US$3.07 billion) this year to help businesses access preferential loans to restore production.

The banking sector will provide credit to businesses at supportive interest rates this quarter, according to the State Bank of Viet Nam’s HCM City branch.

Nguyen Hoang Minh, the branch deputy director, said the COVID-19 pandemic had adversely affected the city’s socio-economy, but his office had measures to mitigate the difficulties faced by businesses in line with the direction from the central bank and the city People’s Committee.

Demand for funds will increase at the end of the year, but there will be no shortage. The banking sector is committed to ensuring sufficient loans at preferential interest rates to help businesses revive production and trading.

The banking sector has become a reliable partner for enterprises, implementing a number of credit policies to enable them to overcome difficulties caused by the pandemic, including debt restructuring, waiver or reduction of interest and fees, and preferential loans to firms in supporting industries and those that use technology.

According to the department, this is a good opportunity for domestic enterprises to participate more deeply and increase their competitiveness in the global supply chain due to many foreign enterprises facing a shortage of raw materials and looking for domestic suppliers.

In October, industrial production activity recovered well compared to the previous month, and the index of industrial production (IIP) was estimated to increase by 23.6 per cent compared to the previous month. However, the IIP has not yet reached the level of the same period in 2020. – VNS