A large-scale interest rate support program is being implemented for enterprises operating in export processing zones and industrial parks in Ho Chi Minh City, offering one of the most preferential financing policies ever introduced by a local government in Vietnam. However, businesses seeking access to the program must clearly understand both the opportunities and the accompanying conditions…
Recently, the Management Board of Export Processing Zones and Industrial Parks, Ho Chi Minh City Finance and Investment State-Owned Company (HFIC), and the Ho Chi Minh City Export Processing and Industrial Zones Business Association jointly organized a conference to introduce the interest rate support policy under Resolution 09/2023/NQ-HĐND and Resolution 523/NQ-HĐND.
This marks the first time since the merger of Ho Chi Minh City, Binh Duong, and Ba Ria–Vung Tau that the program has been introduced comprehensively to the entire export processing zone and industrial park business community across the newly expanded city area.
Introducing the policy to businesses, Mr. Nguyen Quang Thanh, Deputy General Director of HFIC, stated that the program allows manufacturing and business enterprises in the city to access loans of up to VND 200 billion per project through HFIC. The city budget will subsidize between 50% and 100% of interest expenses depending on the sector, with preferential terms lasting up to seven years. Notably, under the maximum 100% support level, enterprises effectively pay only 1% annual interest, significantly lower than current commercial lending rates.
The investment stimulus loan program is expected to create new momentum for enterprises by supporting investments in machinery, equipment, technological innovation, green transformation, and digital transformation to meet increasingly demanding global market requirements. Mr. Thanh confirmed at the conference that HFIC’s lending rates would certainly be lower than those of commercial banks, representing an initial form of support even before taking into account the government’s interest subsidy.
Looking back, Ho Chi Minh City’s investment stimulus program has existed for more than a decade but experienced interruptions during 2021–2022. However, the issuance of Resolution 98/QH15, which introduced special mechanisms specifically for Ho Chi Minh City, created the legal basis for the city to restart the program. Based on this framework, the Ho Chi Minh City People’s Council issued Resolution 09/2023/NQ-HĐND on September 19, 2023, clearly defining the applicable sectors and beneficiaries. Following administrative restructuring, Resolution 523/NQ-HĐND issued on December 26, 2025, reaffirmed the implementation of the policy across the newly expanded city area. This continuous legal framework demonstrates the program’s stable legal foundation, unlike previous periods before the National Assembly approved the special mechanisms.
Under current regulations, four key groups of sectors are eligible for support, including: the city’s four key industries; high-tech manufacturing; green and digital transformation; and social housing and worker accommodation projects. A 100% interest subsidy applies to healthcare, education, and high-tech sectors, while a 50% subsidy applies to logistics and several other sectors.
In addition, Decision 631/QĐ-TTg dated April 6, 2026, issued by the Prime Minister approving the Program for Developing 1,000 Pioneer Enterprises for the 2026–2030 period, also opens significant opportunities for enterprises to participate more deeply in the national production chain. Mr. Thai Thanh Son, Head of the Enterprise and Collective Economy Division under the Department of Finance, stated that participation in this program would provide substantial advantages, not only for city-based enterprises but also for businesses aiming to integrate further into national production networks.
Regarding the specific interest rate mechanism, HFIC representatives explained that for public service units, the maximum lending rate is determined based on the average interest rate of four major banking sectors over the past 12 months (currently 5.9%) plus an additional 2%, resulting in a maximum lending rate of 7.9%. For other organizations, the additional margin may reach up to 3%, though depending on specific cases, lower margins such as 2.9%, 2.8%, or 2.5% may apply.
“In cases where enterprises participate in the program and receive 100% interest support, they only need to pay a maximum of 1% per year. Even if a project is assessed positively and HFIC lends at the base rate plus 2.5%, with the entire difference subsidized, enterprises will still bear only a negligible interest rate,” the HFIC representative emphasized.
Administrative procedures, a major concern for the business community, were also clarified during the conference. Mr. Che Van Trung, Deputy Director of District 2 Public Utility Company and representative of export processing zones and industrial parks, requested clarification on the procedures to guide member enterprises.
Responding to the question, Mr. Thai Thanh Son explained that the process consists of three steps. Step one: enterprises submit a single application dossier to HFIC, including investment project documents, financial statements, and related legal documents. Step two: HFIC transfers the dossier to the relevant departments, such as the Department of Industry and Trade or the Department of Finance depending on the sector, for evaluation against the Resolution’s criteria. Enterprises do not need to submit documents separately to each department. Step three: an inter-agency task force reviews and confirms that the project meets the criteria, after which the lead department submits the proposal to the City People’s Committee for approval. This step normally takes around one to two weeks.
Affirming that “the process is not complicated,” Mr. Nguyen Quang Thanh stated that enterprises only need to register and commit to complying with the program’s conditions, after which the city issues an approval decision. Enterprises can then proceed with project implementation as usual, while HFIC disburses funds according to the project schedule. To date, the inter-agency task force has reviewed more than 10 projects since the program’s relaunch, including on-site inspections at each enterprise to confirm that the projects are genuinely new investments, which is a mandatory condition to ensure the policy reaches the right beneficiaries.
Although the procedures have become more transparent, the conference also openly acknowledged two groups of unresolved issues requiring further refinement.
The first issue relates to foreign-invested enterprises. The program was originally designed for domestically owned enterprises, but in reality, shareholder structures in industrial park enterprises are becoming increasingly complex. Some companies established in Vietnam may have foreign institutional shareholders (F1), while the shareholders of those institutions may themselves be foreign legal entities (F2).
“The current approach is not yet fully clear for this group,” Mr. Thanh admitted, adding that HFIC is proposing to apply provisions under the Investment Law using thresholds of foreign ownership below 50% or associated company rules with a 20% threshold. These matters are expected to be finalized during amendments to the Resolution in June or July 2026. Enterprises in this category are advised to wait another one to two months for clearer legal guidance.
The second issue concerns collateral assets. HFIC accepts leased land with annual rental payments, land-attached assets, and specialized equipment as collateral. However, valuation ratios reflect the liquidity of each asset type: approximately 50% for land-attached assets and around 30% for specialized equipment. For small and medium-sized enterprises with limited collateral, this remains a challenge that the inter-agency task force must carefully consider when assessing financing plans.
Representatives from the Department of Finance also warned SMEs about the importance of actual financial capacity reflected in audited financial statements. Enterprises with profit margins of only 1–2% or financial records that do not accurately reflect their real business scale may encounter difficulties during HFIC’s debt repayment assessment process.
In addition, authorities also provided detailed clarification on practical scenarios such as multi-phase project implementation, disbursement conditions for newly acquired land, and eligible support categories for agricultural processing industries.
Commenting on Ho Chi Minh City’s investment stimulus program through HFIC, Mr. Che Van Trung described it as a genuinely valuable financial instrument for enterprises in export processing zones and industrial parks planning new investments. With high interest subsidies, a single-entry administrative process, and short processing times, the program offers businesses a rare opportunity to access low-cost capital not commonly available through other domestic programs.
Mr. Trung also expressed hope that procedures and eligibility conditions would continue to become more transparent, clearer, and more convenient, enabling more enterprises to access the city’s preferential financial support packages.
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