The Vietnamese Ministry of Trade & Industry is proposing policies to support companies in the supply of raw materials and parts for various industries like textile, garment, footwear, automobiles, etc.
The goal of the ministry is the development of supporting industries in Vietnam, and help them become competitive, so that they can supply raw materials and parts to multinational companies.
The proposal includes offering an interest rate subsidy of three percent to these supporting companies, through commercial banks for medium and long-term loans to invest in raw materials supplying projects.
Other policy measures include support in research and development, human resource training, investment promotion, corporate income tax incentives along with credit support.
The ministry has proposed that the duration of credit support would be equal to the lending duration, but not exceeding ten years from the date of the loan contract.
“Around 5,000 Vietnamese companies are operating in the raw materials and parts supplying sector who would be eligible for support policies,” media reports said.
As per the statistics of the Vietnam Association for Supporting Industriial, domestic procurement was very small, or 30 percent each, for the garment and footwear industries, respectively.
Vietnam garment raw material suppliers to get interest support
