The Da Nang People’s Committee recently issued a decision on granting loans to local businesses, and specified the requirements and documentation required for access.  The loans will come from the city’s Development and Investment Fund, an entrusted fund from the local budget.

The purpose is to help local enterprises to overcome their difficulties and develop their production, as well as to help them become involved in the city’s market price stabilisation programmes. 

Eligible borrowers include businesses which have made a remarkable contribution to the city’s budget and to its export earnings, as well as contributed significantly to creating job opportunities for local residents.  Top priority will be given to those businesses which have been actively involved in local social welfare programmes in the past.

Preferential loans can help local enterprises to stabilise production

Potential borrowers are requested to submit their loan applications, which must meet the specified requirements, as well as earn good profits from their production operations in the year closest to the loan term.  In addition, they are required to have legal property under Vietnamese law, and have no tax or bad bank debts at the time of requesting the loans.  Furthermore, their production plans must be feasible and effective and submitted to the banks, whilst their latest financial statements must have been audited. 

Once they have met the above-mentioned requirements, local companies 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.