The HCM City People’s Committee plans to offer low-interest loans of no more than VND200 billion (US$8.8 million) with a maximum seven-year term to enterprises operating in the manufacturing or support industry.

The aim is to reduce the number of imports by helping domestic companies buy more advanced equipment that can make high-value products.

Vietnamese enterprises and business groups operating under the Enterprise Law and Co-operative Law, and non-business units having investment projects, are eligible to receive the loans.

The city would cover 70 per cent of the interest rate on loans taken out for construction projects and 85 per cent of the interest for equipment and technology projects.

If companies need more than VND200 billion and a longer loan term, the People’s Committee will consider each case and seek support from other sources.

For loans in foreign currency, the city’s budget will support interest on loans at exchange rates issued by the State Bank of Viet Nam.

The city will cover 100 per cent of the loan’s interest rate for projects related to environmentally-friendly equipment and renewable energy or the latest automatic technologies (controlled by computer software).

Half of the interest rate will be covered for projects that include construction of exhibition centres and provision of gas and chemicals for factories and research laboratories. Projects on design, research and development of products for supporting industries and industry in general will also pay only 50 per cent of the interest.

Interested enterprises can register at the city’s Department of Industry and Trade. The city’s People’s Committee said it would issue a decision on each project submission within 15 days. — VNS