Photo: Duc Anh
Southern city to introduce $136 million credit program for local businesses.
The Ho Chi Minh City People’s Committee is to set VND3 trillion ($136 million) aside to support the development of local enterprises.
The city’s People’s Committee will separate the funding into two packages. A package of VND2 trillion ($91 million) will be used to kick-off investment and support and encourage enterprises in renovating equipment and applying science and technology, while another package of VND1 trillion ($45 million) will be used for startups and individual businesses developing into enterprises.
The city has a specific plan and has requested relevant agencies to reform administrative procedures and create favorable conditions for local enterprises.
Agencies must guarantee the rights of businesses and their equal access to resources and opportunities, especially from the two packages.
City leaders have directed the Department of Natural Resources and Environment to study cutting costs in land leasing and converting land use purposes.
They have also directed related departments and district people’s committees to protect the rights and legal interests of enterprises.
Ho Chi Minh City Chairman Nguyen Thanh Phong believes the packages will support at least 500,000 enterprises by 2020. Many will increase their scale and resources so the city’s business community will be competitive and stable.
City leaders also aim for the private sector to contribute about 65 per cent of total production in the city and account for about 64 per cent of the country’s total investment capital.
Total factor productivity (TFP) is to rise about 36 per cent and social labor productivity by 6.5 per cent a year. More importantly, Ho Chi Minh City will have 30 to 35 per cent of its enterprises undertaking greater innovation activities.
In late June the city announced the introduction of a VND1 trillion ($45 million) credit support package for startups, providing them with support in management, technology, and access to bank credit.
Businesspeople under 35 years of age will be prioritized. The city will also hold exchanges between youngsters, undergraduate students, and successful businesspeople and also organize startup clubs.