MPI: Vietnam Uses US$1 Bln as Supportive Loans for Projects in 2009-10

The Vietnamese government will use the US$1 billion stimulus package as preferential loans for infrastructure, housing development, agricultural investment projects and small and medium enterprises (SMEs) for 2009 and 2010, Planning and Investment Minister Vo Hong Phuc said on December 24.

 

The government will support 4 per cent of interest rates of credits for large-scaled transport infrastructure projects such as construction of a number of airports, seaports, investment projects in rural areas and housing development programs, Minister Phuc said.

Minister Phuc also specified that 50 per cent of the total fund, or VND7.17 trillion, will be pumped into infrastructure development projects in economic zones; 25 per cent or VND3.58 billion for agricultural development projects; 5 per cent or VND717 billion for social housing projects; and 20 per cent or VND2.868 trillion for SMEs.

 

The Vietnam Development Bank (VDB) will be authorized to approve those investment projects and funnel funds, the Ministry of Planning and Investment said.

 

The VDB will set up a VND1 trillion fund to guarantee loans for SMEs, MPI said.

 

The government will decide and announce timetables at the regular meeting at the end of December this year, Minister Phuc added. (Investment, Youth)