Ho Chi Minh City has selected five sectors for which preferential loans should be given, including agriculture and rural development, exporters, support industries, small and medium enterprises and high-tech enterprises.
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| Agricultural and rural development sector to recieve preferential loans |
The decision was announced in a report concerning the socio-economic development in the city in the first quarter of the year, which also set new goals for the coming quarter.
Thai Van Re, Director of the local Planning and Investment Department, stated that the GDP growth of the city, which reached about VND113 trillion (USD5.4 billion), an increase of 7.6% from last year, shows good signs for economic development.
Although the number of new enterprises did not indicate an increasing trend, the total amount of investment in HCM City during the first quarter is higher than the same period last year. These statistics would seem to indicate that both foreign and local investors are regaining confidence in the service and manufacturing sectors.
On the other hand, a number of local authoritative bodies have expressed concern over the halting of operations among some firms, especially in the real estate and securities sectors. They also complained about the reduction to local public budgets resulting from recent reductions in taxes.
In addition, site clearance remains a problem for many infrastructure and real estate projects.
Le Hoang Quan, Chairman of HCM City People's Committee said they would continue to support enterprise and contribute to social housing programmes.
According to the central bank’s HCM City branch, local banks have given loans worth nearly VND100 trillion to around 22,000 corporate clients in these five preferred sectors.
The agency has cooperated with local authorities to carry out many connection programs between banks and enterprises to help businesses access capital sources.
The Saigon Times Newspaper quoted Nguyen Hoang Minh, deputy director of the central bank’s HCMC branch, as saying that two connection programs have been organized this year, one in District 8 weeks ago and one in District 6 that took place on Wednesday.
Some 34 enterprises and traders of Binh Tay, Phu Lam and Minh Phung markets in District 6 on Wednesday were given loans with the total value of VND671 billion at lending rates under 11% per annum. The credits were given by VietinBank’s branch no. 6, the Saigon Times reported.
