Ho Chi Minh City subsidises interest on loans for industrial investment
Support can cover all eligible interest costs for qualifying projects, but applicants must remain wholly domestically owned and obtain approval before signing specified contracts.
Ho Chi Minh City is using municipal funds to subsidise borrowing costs for eligible industrial projects, with a loan ceiling of ₫200 billion per project, excluding deductible VAT. Nguyen Quang Thanh, deputy general director of Ho Chi Minh City Finance and Investment Company, outlined the support at an industry showcase held on October 20–25, 2026.
Thanh said the financing covered by the scheme is limited to 85 per cent for technology and equipment investment and 70 per cent for construction investment. Subsidies can continue for seven years at most, starting when funds are first disbursed.
The subsidy uses the actual borrowing rate, subject to a ceiling calculated from monthly announcements by four commercial banks operating locally: their average rate for 12-month dong deposits, plus a yearly management fee of 2 per cent.
Eligible automation, electronics and IT projects can qualify for subsidies covering 100 per cent of interest. These include new ventures, factory improvements and expansion, and modern equipment purchases. Qualifying products range from automotive components and robots to semiconductor chips, sensors and software for production control.
Thanh said mechanical and electrical engineering businesses could include green measures in qualifying projects to receive subsidies ranging from 50 to 100 per cent. Full support applies to specified investments involving resource efficiency, renewable-energy equipment components, pollution treatment, recycled materials and production management using data.
Applicants must be legal entities with entirely domestic ownership and preserve that structure while receiving support. Projects already benefiting from another publicly funded interest subsidy cannot qualify.
Applications involve financial assessment and a site visit by an inter-agency group before approval by the chairman of Ho Chi Minh City People's Committee. Thanh said applicants must wait for committee approval before signing construction, equipment or technology contracts for items seeking support. Borrowers must also meet principal and interest repayment deadlines.
