There are only 4 months left until the end of Da Nang’s interest rate support program that was introduced on the basis of the Resolution No. 60/2021/NQ-HDND dated December 17, 2021 on subsidies to loans of small and medium-sized enterprises (SMEs) from the Da Nang Development Investment Fund to help them to restore and expand their production in the context of COVID-19. The municipal Development Investment Fund is focussing on increasing publicity for its support scheme, as well as providing guidance and timely support to SMEs in a bid to help them quickly access this program.

Picture is taken at the Huynh Duc Trading - Service and Production Co., Ltd located in Lien Chieu District. Photo: M.Q

The Huynh Duc Trading - Service and Production Company Limited located in Lien Chieu District has made its investment plan for the period from late 2021 to 2023 to purchase machines and equipment at a total cost of VND 70 billion in line with the city's development strategies for supporting industries.

The company’s CEO Mr Lam Phung Ut highlighted the significance of modernization of machine and production lines in reducing production costs as well as ensuring workers are operating in safer conditions. Machine modernization will help the company increase its production capacity to be able to churn out 400 tons of products a year, thereby creating favourable conditions to hire more employees, and driving the development of other industries. Therefore, the company will create 30 new job opportunities for job seekers to bring its total employees to 165. With such a large investment capital, the company has accessed many sources of loans, in which, a loan worth VND 37 billion were borrowed from the Da Nang Development Investment Fund, accounting for 52% of its total planned investment capital.

Mr Ut remarked that the company will benefit from the city’s interest rate support program as it can save a maximum of around VND 320 million a year on interest on its loan from the municipal Development Investment Fund. The saved money can be used to continue to upgrade the company’s production lines, he added.

Similarly, the Binh Vinh II Joint Stock Company is eligible to enjoy 50% interest rate support from the city’s scheme. Hence, the company can get a subsidized loan of VND 25 billion, accounting for 57.5% of its total planned investment capital reaching VND 47.3 billion to purchase 15 trucks, 10 tractors, and 10 second-hand semi-trailers.

The company’s Director Pham Bac Binh said that subsidized loan assists the company in its adaptation to the national regulations concerning the safety of loads on vehicles and the growing demand from its customers while creating new job opportunities for at least 50 workers, and contributing more to the city’s budget.

Mr Binh praised the city’s interest rate support program for its practical help that give a big boost to SMEs amid the ongoing coronavirus outbreak.

In its efforts to help more SMEs enjoy benefits from the city’s interest rate support program, the Da Nang Investment and Development Fund has worked with the Municipal Association of Female Entrepreneurs, the Municipal Association of Small and Medium Enterprises, and the Hoa Cam Industrial Park Investment Joint Stock Company to hold a meeting with a number of SMEs to introduce this program. In addition, the heed has been paid to distributing leaflets to offices of business associations along with local departments and agencies in a bid to provide information about the city’s support scheme for local businesses.

Mr. Nguyen Thanh Tam, the Director of the Da Nang Development Investment Fund, said that close to 15 eligible SMEs have till date been assisted to apply for a subsidized loan under the city’s support scheme, of which, 6 have been approved to get loans of VND 132.2 billion.

Reporting by MAI QUE – Translating by H.L