VietinBank earmarks VND10 trillion loans for supporting industries
HCMC Department of Industry and Trade director Pham Thanh Kien (L) exchanges a signed agreement with a VietinBank representative - PHOTO: HUNG LE
HCMC – VietinBank on April 18 signed an agreement with the HCMC Department of Industry and Trade to launch a lending program totaling VND10 trillion (US$439.7 million) for manufacturing enterprises and those in supporting industries in the city.
The deal is in response to the city government’s Decision 15 on support for enterprises to invest in manufacturing and supporting industries.
The signing took place at a conference on introduction of incentive policy for supporting industries held by the HCMC Department of Industry and Trade on April 18.
The credit program is aimed at encouraging firms to upgrade equipment, improve productivity and add more value to their products, and promoting manufacturing and supporting industries.
The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) will lend to investors whose projects belong to priority manufacturing and supporting industries, with the city government covering interest payments up to 100% or a maximum of VND200 billion per project.
For projects requiring loan interest support of more than VND200 billion or an interest support duration of more than seven years, the city will consider them on a case-by-case basis.
Nguyen Hoang Dung, deputy general director of VietinBank, said the VND10 trillion credit program could be increased if demand is greater than expected.
VietinBank said its branch directors would work with the Department of Industry and Trade to carefully evaluate borrowing projects.
The HCMC Department of Industry and Trade also took the occasion to launch a website at https://csid.gov.vn/ where a database on supporting industries is made available.