HCM City (VNA) – Ho Chi Minh City isenacting policies to aid businesses in the supporting industry by encouraginginvestment, networking between firms and banks, and creating special zones.

The municipal People’s Committee has approved 15investment projects related to the mechanical, plastic and food industries,with total investment of 938 billion VND (41.3 million USD), 581 billion VND ofwhich would be supported by the government in the form of paid interest onloans, according to the municipal Department of Industry and Trade.

A city multi-disciplinary team has alsoappraised nine projects, at a total of 943 billion VND (41.5 million USD). Twoof them have been approved by the city.

The HCM City Export Processing and IndustrialZones Authority (HEPZA) is working with related authorities to formsupporting-industry zones in Hiep Phuoc Industrial Zone and Le Minh Xuan 3Industrial Zone.

Nguyen Phuong Dong, Deputy Director of theDepartment of Industry and Trade, said that to provide space for businesses tooperate, HEPZA was also building factories at Tan Thuan Export Processing Zoneand Linh Trung 1 Export Processing Zone.

Factories in the former are already beingrented, while those in the latter are expected to start construction withinthis month.

In addition, the Department of Industry andTrade is working with the State Bank of Vietnam - HCM City Branch to connectbanks with businesses and encourage credit unions and financial institutions tooffer credit packages to businesses in the supporting industry.

Also, in accordance with Circular 29/2018/TT-BTCissued by the Ministry of Finance to manage funding for supporting industrydevelopment, nation-wide cities and provinces including HCM City can use statefunds to provide financial aid to companies and organisations so they canorganise exhibitions and conferences on attracting investment.

Accordingly, the companies and organisations inthe city would be given up to 70 percent of the total costs for suchactivities, or up to 12 million VND per participant, as well as help inpromotion and brand registration, up to 50 million VND per brand.

Also, according to the circular, the costs forsending business delegations to events in other countries will also be coveredup to 70 million VND per participant, depending on the country.

In addition, the costs for appraisal,counselling and certification for businesses in the supporting industry wouldbe fully covered by the State Budget.

All of these efforts are part of HCM City’s planto develop its supporting industry. The city targets meeting 45 percent ofnational demand for manufactured inputs by 2020 and 65 percent by 2025.

The supporting industry has not grown as quicklyas others, affecting the city’s economic development as a whole.-VNA