Ho Chi Minh City has taken a bold step to reshape the financial landscape for its small and medium-sized enterprises as well as startups, unveiling a preferential loan program that could reach up to VND 200 billion per project. This initiative, presented at a seminar hosted by the Department of Science and Technology in collaboration with the Ho Chi Minh City Innovative Startup Center (Sihub), HFIC, and the city’s Credit Guarantee Fund, signals a strong commitment to nurturing entrepreneurial growth in Vietnam’s most dynamic metropolis.

The program is structured around two pillars: interest rate support loans and credit guarantees. HFIC serves as the focal point for lending, while the city budget offsets interest costs, allowing businesses to access capital at rates supported between 50% and 100% depending on the project. The maximum support period stretches to seven years, with interest calculated on the average 12-month deposit rate of four major commercial banks plus a modest management fee. This mechanism ensures that enterprises, cooperatives, and even public non-business units such as hospitals and schools can benefit, provided they align with the city’s socio-economic development plan.

Priority sectors include high technology, digital transformation, agricultural trade, healthcare, education, culture, sports, and environmental infrastructure.

Beyond these, the city’s four key industries: mechanical automation, electronics and IT, rubber and plastics, pharmaceuticals, food processing, textiles, and footwear, are fully eligible for interest rate support. To qualify, projects must demonstrate efficiency and repayment capacity, with HFIC conducting appraisals before loans are approved.

For businesses lacking collateral, credit guarantees offer another lifeline. Enterprises can secure up to 100% of their loan value if they maintain equity of at least 15–20% of the project’s worth and remain free of overdue tax obligations. Repayment terms are structured to ease financial pressure, requiring installment payments rather than lump-sum settlements. Any borrowing beyond the VND 200 billion cap or the seven-year limit must be self-financed, ensuring fiscal discipline while still providing substantial support.

Officials acknowledge that capital remains the greatest bottleneck for startups and SMEs. As Pham Huynh Quang Hieu, Deputy Director of the Department of Science and Technology, noted, many young companies rely on intangible assets such as intellectual property, technology, and human capital—elements that traditional lenders struggle to value. The city’s policy framework, therefore, aims to bridge the gap between available capital and enterprises in need, emphasizing transparency in procedures and documentation to help businesses prepare effectively.

This approach reflects a broader vision: building a “capital chain across the enterprise lifecycle.” Early-stage ventures benefit from seed funding and venture capital, while credit guarantees and interest subsidies sustain expansion. Once businesses mature, market capital steps in to fuel further growth. The city’s strategy has already borne fruit, with Ho Chi Minh City entering the Top 100 global startup ecosystems according to StartupBlink—four years ahead of its 2030 target.

The momentum is reinforced by partnerships such as VnExpress and MB Bank’s dedicated business platform, launched in 2025, which provides insights into policy, investment, innovation, and inspiring entrepreneurial stories. Together, these initiatives create a fertile environment where Vietnamese enterprises can thrive, innovate, and compete globally.