The Ministry of Science and Technology has proposed subsidizing up to half of borrowing prices for corporations investing in technology adoption, switch, and innovation, with a pilot program focusing on 20 companies earlier than a broader rollout.
The Ministry of Science and Technology (MoST) has proposed subsidizing 50 p.c of mortgage interest, capped at 6 p.c a yr for up to 5 years, for companies investing in technology adoption, technology switch, and technological innovation by the National Technology Innovation Fund.
On July 10, MoST held a workshop on implementing the National Technology Innovation Fund’s mortgage interest subsidy program.
At the workshop, the Ministry proposed a coverage to subsidize 50 p.c of mortgage interest, with a most subsidy of 6 p.c a yr for up to 5 years, for companies investing in technology adoption, technology switch, and technological innovation by the fund. The coverage is predicted to be piloted with 20 corporations earlier than being expanded nationwide, with the intention of unlocking credit score, encouraging technology investment, and bettering productiveness and competitiveness.
Speaking on the workshop, Minister of Science and Technology Vu Hai Quan stated Politburo Resolution No. 57-NQ/TW identifies science and technology, innovation, and digital transformation as key drivers of Vietnam’s new development mannequin. To obtain these objectives, he stated, the nation should implement complete measures starting from analysis and growth of core and strategic applied sciences to constructing innovation infrastructure, growing human assets, and bettering insurance policies to help companies.
According to Minister Vu Hai Quan, companies should be on the heart of the innovation ecosystem, and all insurance policies must be designed round their sensible wants. The Government’s function, he stated, is to create enabling mechanisms and shared infrastructure that cut back investment prices and strengthen business competitiveness.
The Science and Technology Minister stated the core goal of the National Technology Innovation Fund’s mortgage interest subsidy program is to encourage companies to modernize their applied sciences so as to enhance labor productiveness, together with corporations that aren’t formally acknowledged as science and technology enterprises however want to spend money on new applied sciences.
Under the proposal, the federal government would help companies by subsidizing a part of their mortgage interest prices once they receive financial institution financing to spend money on technology adoption, technology switch, or technological innovation. The coverage is meant not solely to cut back financing prices but in addition to give companies better confidence to spend money on innovation.
The program goals to help companies in investing in and upgrading technology, bettering productiveness and product high quality by a mortgage interest subsidy mechanism. It additionally demonstrates the federal government’s function as an enabler, serving to strengthen business confidence and creating momentum for company growth, Minister Vu Hai Quan stated.
Director Bui Quang Minh of the National Technology Innovation Fund (NATIF) stated the proposed interest subsidy coverage is predicated on market rules. Banks would proceed to conduct credit score assessments, make lending selections, and handle lending dangers. Rather than offering direct funding, the federal government would subsidize a part of debtors’ interest bills to encourage technology investment.
Under the proposal, companies endeavor initiatives involving technology adoption, technology switch, technological innovation, or innovation actions could be eligible for help in the event that they meet necessities associated to venture feasibility, authorized documentation, financial effectivity, and technological functionality.
Priority could be given to initiatives utilizing applied sciences included on the nationwide listing of applied sciences inspired for switch, excessive applied sciences prioritized for growth investment, and strategic applied sciences. The coverage would additionally favor initiatives that generate excessive added worth and have broad spillover results throughout the financial system.
The proposed subsidy would cowl 50 p.c of the interest rate laid out in an organization’s credit score settlement, capped at 6 p.c a yr, for a most of 5 years. The pilot program is predicted to run by the tip of September 2026, after which it will likely be reviewed and evaluated earlier than being expanded.
By Tran Binh – Translated by Anh Quan