A discussion recently took place in Da Nang on the implementation of transferring entrusted capital to the local Development and Investment Fund.  The purpose was to enable local businesses to access loans to develop their production.

Eligible borrowers are businesses which have been actively involved in producing and exporting aquatic and pharmaceutical products, textiles and garments, machinery, refrigeration engineering, leather shoes, handicrafts, software, building materials, and tourism services.  Any other borrowers who want to access loans must seek approval from the municipal authorities.

The above-mentioned beneficiaries will be allowed to access loans up to a maximum of 5 billion VND each at an interest rate of 7.5% pa for a maximum 1-year term.  

However, some participants raised concerns about the difficulties facing local businesses when they try to access the fund’s loans.  The main concern was that the fund’s loan conditions are too strict, and its interest rates are not much lower than those of local banks.  Therefore, they would like the fund to reduce its loan interest rate to 5% pa.