A small- or medium-sized enterprise having a project to manufacture supporting industry products prioritized for development may borrow a loan equaling up to 70 percent of its investment project’s capital level.
Such is provided in a draft circular guiding credit policies to develop supporting industries, which is prepared by the State Bank of Vietnam to guide Government Decree No. 111/2015/ND-CP dated November 3, 2015.
|A fabric production line of Phong Phu Textile and Garment Corporation, Ho Chi Minh City__Photo: An Hieu/VNA|
In order to get such a loan, the enterprise must meet several conditions. First, it must obtain a guarantee for its loan in accordance with law. Second, the total value of the enterprise’s assets mortgaged or pledged at the lending institution, after deducting the value of assets used as collateral for other loans, must equal at least 15 percent of the loan. Third, the enterprise’s equity must account for at least 20 percent of the project’s investment capital. Last, at the time of application for guarantee, the enterprise must owe no outstanding debts to the State, banks and other economic institutions.
Besides, the project would also be entitled to a short-term lending interest rate not exceeding the rate announced by the State Bank Governor for application to enterprises operating in a number of sectors and trades in each period.
According to Decree No. 111, supporting industries means industries that manufacture materials, details, components and spare parts serving the textile-garment, leather and footwear, electronics, automobile manufacture and assembly, mechanical engineering and hi-tech industries.- (VLLF)