In parallel with lending mechanism, the Da Nang Development Investment Fund has continuously accelerated procedures for businesses to benefit from interest rate support policies.

The Da Nang Development Investment Fund signs a credit contract to provide VND 85 billion in loans with Da Nang Port Joint Stock Company to deploy the investment of 4 eRTG cranes at the Tien Sa Port. Photo: MAI QUE

In July, the Da Nang government approved the implementation of interest rate support packages for investment into 4 Electrified Rubber Tired Gantry (eRTG) Cranes at the Tien Sa Port under the management of the Da Nang Port Joint Stock Company.

Accordingly, the company is entitled to interest rate support packages with an annual interest rate of 3%; the annual interest rate support amount is not over VND 2 billion and the interest rate support period is up to 5 years.

It is known that the above-mentioned project has an investment of VND170.19 billion to serve the exploitation and handling of containers at blocks G, H, I, K, meeting the demand for goods through the port, improve productivity and quality of container handling services, reduce inadequacies due to the limited size of yards, contribute to improving the competitiveness and efficiency of the port's production and business performances.

The Da Nang Investment and Development Fund lends VND 85 billion (about 50% of the project’s total investment) with an interest rate of 6.5%/year.

Mr Le Quang Duc, the Deputy General Director of the Da Nang Port Joint Stock Company, said that in recent years, the volume of goods passing through the port had increased dramatically, while the number of equipment for loading and unloading containers at the yard was still limited. At some point, the company faced the risk of overloading with the existing ERTG cranes, affecting ship clearance and service quality.

After more than 7 months of putting eRTG into operation from December 2022 to July 2023, along with effective use of the yard, loading and unloading productivity has significantly improved, thus shortening the time required for loading and unloading.

It can be said that the orientation of equipment investment and increasing the efficiency of yard use is absolutely appropriate and is a prerequisite factor contributing to business efficiency, thereby contributing to creating motivation to promote production and business activities of other industries and fields in Da Nang and Central Viet Nam at large.

In particular, the amount of interest support mentioned above has helped the company save a financial expense to re-invest in new projects in the coming time.

It is known that, in addition to interest rate support policies, the Investment and Development Fund has accelerate the implementation of 50% interest rate subsidy  for loan projects of small and medium-sized enterprises. Accordingly, 8 businesses are eligible for interest rate support with a total loan of VND148.8 billion.

As reported by Mr. Nguyen Thanh Tam, the Director of the Da Nang Development and Investment Fund, since the beginning of 2023 until now, the Fund has approved VND59.2 billion in loans for 8 projects, including machinery and equipment investment for the garment industry at the Hoa Tho Textile and Garment Corporation; the renovation of freezing and cold storage compartments at the Seafood Processing Factory of the Da Nang Seafood Joint Stock Company; a power grid completion project along Bach Dang and Nhu Nguyet streets by the Da Nang Electricity One Member Limited Liability Company, all of which are worth VND95.7 billion.

With preferential and stable lending interest rates, long loan periods have helped businesses have good financial resources and save costs, especially in the period of high market interest rates as recently, in time relieve difficulties facing businesses and focus on approaching policies to expand production and business activities and deploy projects in the city.

The Fund-allocated loans is used by businesses for the right purposes, meeting capital needs for production and business activities, especially small and medium-sized enterprises maintaining production after COVID-19. Currently, the Fund focuses on introducing the interest rate support policies to the business community in the city.

Reporting by MAI QUE - Translating by A.THU