In 2022, the Da Nang Development Investment Fund expands loan customers to small and medium-sized enterprises (SMEs) and businesses that have never borrowed money from the fund, aiming to helping them have more capital for year-end production and business activities.

The Da Nang Development Investment Fund expands loan customers to small and medium-sized enterprises. In the photo: Production activities are seen at the Ba Loc Sandpaper Glue Manufacturing Company Limited based in Hoa Khanh Industrial Park, Lien Chieu District. Photo: M.Q

Since the Ba Loc Sandpaper Glue Manufacturing Co., Ltd based in the Hoa Khanh Industrial Park invested in raw material handling machinery and equipment in mid-2022, its production capacity has increased by 60-70% and its revenue has risen by 30-40%.

Director of the company Nguyen Thanh Phuoc said that thanks to a loan of VND 3 billion from the city’s Development Investment Fund, his company also invested in a firefighting and prevention system according to new standards, so that employees can work with peace of mind.

"The loan from the Investment and Development Fund is considered to be a ‘buoy’ for businesses because it is quite hard for local businesses to get loans at credit institutions and commercial banks. Notably, the loan interest rate of 6.5%/year is very reasonable” Director Phuoc added.

He informed that his company is one of objects that are considered to access loans from the Da Nang Investment and Development Fund with 50% interest rate support.

Most recently, the INTELTECH Technology Application and Solutions Company Limited based in Cam Le District has signed a loan agreement worth of VND 8.5 billion with the municipal Development Investment Fund.

The loan has been used to purchase 14 machines, 12 kiosks, 2 means of transport and 4 other equipment in service of souvenir production and trading.

Mr. Ho Nguyen Truong, Director of the company, said that the above machinery and equipment will contribute to promoting the modernization and application of machinery and equipment to the production of souvenirs for the tourism industry, thereby increasing productivity, reducing production costs, developing tourism products with local characteristics, and enhancing improve working conditions of workers.

He added the project will offer job opportunities for at least 45 employees, and create conditions to promote other industries to develop together, hereby contributing to the city's budget, and increasing corporate income.

“This is the first time I have borrowed money from the city’s Development Investment Fund. I am very pleased to be supported to lend a relatively large amount at a much lower interest rate than that at commercial banks. This confirms the city's interest is for SMEs and businesses in the field of supporting industries" Mr. Truong added.

The expansion of customers, as well as the strengthening of lending to SMEs is one of the orientations that the city’s Investment and Development Fund is targeting with the aim to support local businesses in the spirit of Resolution No. 60/ 2021/NQ-HDND.

After nearly a year of implementation, the unit has guided about 20 SMEs to prepare for loan documents. Till date, 7 SMEs are eligible to access the Fund’s loans worth of VND 140.7 billion in total. Currently, the Fund receives a project and assesses the loan demand of VND 30 billion.

Thus, it is estimated that 8 projects have been given access to loans worth of about VND170.7 billion in total.

Mr. Nguyen Thanh Tam, Director of the municipal Development Investment Fund, said his unit is cooperating with business associations to widely publicise the loan-related information to the business community.

At the same time, the Fund is also continuing to carry out procedures related to Resolution No. 60/2021/NQ-HDND so that businesses can benefit from the policy soon. The loan interest support will help businesses continue to cover operating costs during project operation, create jobs for employees, and contribute to ensuring social security in the locality.

Reporting by M.QUE - Translating by M.DUNG