The People's Committee of Ho Chi Minh City has just issued Decision No. 15/2017/QD-UBND regarding regulations on assistance for enterprises investing in the rural industrial production development in Vietnam.
Article table of contents
According to Decision, projects in the fields of industrial production and supporting industries are subsidized interest rates according to the Regulations on supporting enterprises investing in the development of production in industrial and supporting industrial fields in the city.
The interest rate for loan interest support is calculated based on actual rates
- The interest rate support is calculated based on actual rates, but it must not exceed the average 12-month savings interest rate in Vietnamese dong (end-of-term interest payment type) of four commercial banks in the city (Agribank - Ho Chi Minh City Branch, BIDV - Ho Chi Minh City Branch, Vietcombank - Ho Chi Minh City Branch, VietinBank - Ho Chi Minh City Branch) plus a 2% annual management fee. This interest rate is announced monthly by the State Bank of Vietnam's Ho Chi Minh City Branch in accordance with regulations.
The difference between the actual loan interest rates of credit institutions or the Ho Chi Minh City State Financial Investment Company and the interest rates supported by the city's budget will be self-balanced by the Investor.
- The interest rate support period for projects is not more than 7 years from the first disbursement date; the loan amount of the project supported by the budget is not more than 70% of the basic construction investment capital (refer to the investment rate issued by the Ministry of Construction or other methods of calculating the total investment capital as prescribed) and 85% of the technology and equipment capital.
- The loan amount supported by interest rates does not exceed 200 billion VND per project (for projects borrowing in foreign currency, the loan amount will be converted to VND at the exchange rate announced by the State Bank at the time of signing the credit contract). For projects requiring an interest rate support amount of over 200 billion VND or an interest rate support period of over 7 years, the city's People's Committee will consider and decide on a case-by-case basis.
Investment projects are supported 100% by the city's budget
- Investment projects producing new machinery and equipment or applying new technologies that are automated and controlled by computer programs.
- Investment projects in equipment using green energy, renewable energy to save energy and reduce environmental pollution.
- Investment projects to develop the production of products and components such as:
| INDUSTRY GROUP | PRODUCTS |
| Engineering Industry | 1. Various types of machinery for industry, agriculture, forestry, and fisheries: - Machinery and equipment for the mechanical engineering industry such as: cutting machines, grinding machines, drilling machines, stamping machines, pressing machines, rolling machines, welding machines. - Machinery serving pharmaceutical production, food processing, machinery for the agriculture, forestry, and fisheries sectors such as pharmaceutical machines, dairy production machines, packaging machines; industrial production machinery; cultivation machinery; harvesting machinery; preservation machinery; product processing machinery; automatic livestock and poultry slaughter chains. 2. Centrifuges; sterilization and pasteurization devices; UV (ultraviolet) disinfection devices; ion exchange devices; activated carbon filtration devices; reverse osmosis filtration devices. 3. Automatic bottling machines, packaging machines, lid sealing machines, and can seamers; automatic transmission lines. 4. Textile machines, industrial sewing machines, embroidery machines; buttonhole machines, button attaching machines using automation technology. 5. Electrical cut-off devices; electric cables of 15 kV and above; connecting devices, energy-saving equipment; generators; transformers; electrical equipment; power distribution equipment; thermal and refrigeration equipment used in processing industries; automatic control systems. 6. Automotive parts: - Car chassis. - Car seats, various types of glass. - Cooling system: Radiator, water tank, fan, thermal valve, water pump. - Fuel supply system: Fuel tank, fuel filter, air filter, fuel pump pipes, carburetor system, fuel injection system. - Chassis-body-door system: Stamped sheet parts, chassis, truck bodies, steps, door assemblies. - Suspension system: Springs, elastic springs, shock absorbers. 7. Metal components and parts for industrial products. 8. Components and parts for producing electrical equipment. 9. Molds. 10. Tools - technical cutting tools. 11. Machine parts and details. 12. Pressure pumps, fuel injection systems; fuel filters. 13. Alloy billets, tool steels. 14. Components and parts for marine and shipbuilding industries. 15. Measuring and testing tools. 16. Surface treatment systems for metal or plastic parts. 17. Production of components and parts for the complete assembly of printing equipment. |
| Chemical-plastic-rubber industry | 1. Technical plastic and rubber products for the infrastructure sector, water supply and drainage, flood prevention, of the city. 2. Conveyor belts, V-belts, technical rubber pipes, rubber gaskets, seals, and synthetic rubber production. 3. Technical plastic packaging, multilayer packaging, composite packaging, environmentally friendly packaging, composite printing, digital printing, printing on materials for industrial production. 4. Car tyres; export motorcycle tyres; technical tyres for industrial and agricultural machinery; rubber shock-absorbing materials. 5. Technical plastic and rubber components and parts for industrial products. 7. Precision transmission belts, high durability and longevity components, heat-resistant and wear-resistant plastic components. 8. Investment projects for technological equipment innovation for composite materials production, new high-quality materials production. 9. Production of pharmaceutical chemicals and medicinal products. 10. Production of chemicals, additives, various types of ink serving the printing industry. |
| Food processing industry | 1. Production of products processed from raw materials such as: livestock, poultry, aquatic products, and agricultural products that are industrially produced on modern technological lines, ensuring food safety. 2. Food additives (color stabilizers, structural additives, preservatives); extracts and ingredients for food flavoring, functional foods. |
| Electronics - Information technology industry | 1. Computers (desktop PCs, servers, laptops, tablets, etc.). 2. Machinery and equipment for information and communication technology (radio transmission devices, television, telecommunications, mobile phones, etc.) of new generations. 3. Surveillance and control information systems for the city's breakthrough programs. 4. Basic electronic and optoelectronic components: Transistors, integrated circuits, sensors, resistors, capacitors, diodes, antennas, thyristors, connectors, fuses, automatic control devices, processors. 5. Quartz components. 6. Electronic microchips. 7. Components for electronic product assembly industries: plastic components, rubber components, electromechanical parts, glass components. 8. Batteries produced with new technology for the information, computing, and home appliance sectors, replacing traditional lead-acid batteries, solar batteries. 9. Production of electromagnetic wires of various types; headphones, speakers, smart devices. 10. End-user products using microelectromechanical systems (MEMS), nano electro-mechanical systems (NEMS), and application devices. 11. Various types of screens. 12. Various types of electronic components, microelectronic circuits for developing devices: peripheral devices, home electronics, audio-visual equipment; microprocessor chips. 13. Various types of sensors: gas sensors, accelerometers, magnetic field sensors; biological sensors, temperature sensors, humidity sensors, light sensors, pressure sensors, etc. 14. New generation motors: electric motors, magnetic bearings, servo motors (stepping motors), reluctance motors, linear motors. |
| Textile - Garment industry | 1. Synthetic fibers. 2. Yarn. 3. Technical fabrics, various types of fabrics. 4. Chemicals, auxiliaries, dyes used in fabric finishing. 5. Garment accessories for export or import substitution: buttons, interfacing (shaping adhesive), zippers, elastic bands, labels, threads, technical yarns, needles. |
| Footwear industry | 1. Shoe soles, shoe uppers, sewing threads for shoes, insoles, eyelets, buckles, hooks, shoe lasts, shoe adhesives. 2. Synthetic leather, Simili. |
Projects supported 50% interest rate by the city's budget
- Investment projects for constructing exhibition centers, transaction centers for industrial and supporting industrial products.
- Investment projects for constructing centers: design; research; application; development of industrial and supporting industrial products.
- Projects supplying gas (LNG, CNG, LPG), chemicals for production technology plants, supporting industries, research - testing laboratories.
.Medium.png)
.Medium.png)
.Medium.png)
.Medium.png)
