Ho Chi Minh City to subsidise interest for hi-tech farms

Friday, 2018-02-23 11:43:41
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Using smart technologies to grow cantaloupe at the Hi-Tech Agriculture Park in HCM City ​(Photo: VNA)
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NDO/VNA – Ho Chi Minh City will subsidise interest on bank loans by up to 100 percent as an effort to support individuals and organisations who help to transform its agricultural sector.

Resolution No 10/2017 of the municipal People’s Council, seeks to encourage investment to transform the farm sector into a modern, efficient, and sustainable industry in 2017-20, sets out the provision for the subsidy.

The loan amount to qualify for support will be based on the investment scale and the regulations of the lending organisation.

The subsidy will be equal to the average 12-month VND deposit interest rate at four State-owned banks - Agribank, BIDV, Vietcombank, Vietinbank - plus 2 percent.

If the lending interest rate is lower than the subsidy rate, the subsidy provided will be equal to the former.

The subsidy will cover the following components: basic construction, machinery and equipment for agricultural production and processing, harvesting bird nests, buying new fishing vessels and upgrading machine capacity, replacing existing unproductive dairy cows, and seed and hi-tech agricultural production.

The term of support will depend on the approved production cycle but will not exceed five years.