A significant opportunity has emerged for businesses and startups in Ho Chi Minh City to access interest-subsidized capital of up to VND200 billion ($7,7 million) per project, aimed at driving economic development and innovation.
This information was shared by representatives of the HCM City State Financial Investment Company (HFIC) and the Credit Guarantee Fund at a workshop titled "HFIC & Credit Guarantee Fund – Capital Gate for Startups and SMEs," held in the city on August 25.
Accordingly, HFIC will serve as the focal point for lending and syndicated lending, with the city budget subsidizing the interest rates. Under the City People's Council's Resolution 09/2023/NQ-HDND, the maximum subsidized loan amount is VND200 billion per project. Notably, construction projects can receive support for up to 70% of total investment capital, while technology and equipment investment projects can receive support for up to 85%.
Speaking at the workshop, Mr. Nguyen Ha Lam from HFIC emphasized that to be eligible for interest rate support, projects must align with the city’s socio-economic development plan. Furthermore, businesses must not have signed contracts with contractors or suppliers for the specific items for which they are requesting support.
This capital support program is not limited to the innovative startup sector. but also to small and medium-sized enterprises (SMEs) and even large-scale corporations looking to borrow capital to expand their production and business operations.
Deputy Director of the City Department of Science and Technology, Mr. Pham Huynh Quang Hieu, noted that the current biggest barriers are the information gap and the lack of preparation on the part of businesses. He emphasized that capital remains the primary bottleneck for startups and SMEs, as most businesses still rely heavily on collateral to secure loans.
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