A mechanical engineering company. Businesses in various priority sectors that help drive socio-economic growth in HCM City will get interest rate subsidies starting later this month.— Photo courtesy of csid.gov.vn

Loans given by the HCM City Finance and Investment State-owned Company to priority sectors that drive socio-economic growth will be subsidised by the city starting July 29.

It will be provided to 100 per cent domestic enterprises, economic organisations and public service units.

It will benefit businesses related to technology, digital transformation, start-ups, trade and agricultural services, education, healthcare, sports and culture, technical and environmental infrastructure, the city’s four key industries (food processing, pharmaceutical chemicals-rubber-plastic, mechanical engineering, and electronics), and support industry.

The maximum loan per project to benefit from the programme will be VNĐ200 billion (US$7.8 million).

The maximum subsidy rate will not exceed the average 12-month đồng deposit interest rate of the four State-owned banks (Agribank, BIDV, Vietcombank, Vietinbank).

The interest rate will be announced every month by the State Bank of Việt Nam.

The subsidy is for seven years.

The Departments of Planning and Investment and Industry and Trade will receive applications for the subsidy and the People's Committee will approve.

Resolution 09 to provide the subsidies was issued by the city People's Council last September.

The HCM City Finance and Investment State-owned Company said it is preparing to start as soon as the People's Committee notifies it. — VNS