Vietnam to Subsidize Half of Loan Interest for Technology Innovation

The National Fund for Technology Innovation (NATIF) under the Ministry of Science and Technology has announced a program to subsidize 50% of loan interest for businesses investing in technology transfer, application, and innovation. The support is capped at a maximum of 6% per year and can extend for up to five years. Businesses with eligible projects or investment plans that have secured loan approval and signed credit contracts with banks can submit applications for interest rate support. The deadline for the first application period in 2026 is 5 PM on September 20. The subsidy covers 50% of the interest rate stipulated in the credit agreement between the enterprise and the bank. However, the subsidized amount will not exceed 6% per annum. For instance, on a loan with a 10% annual interest rate, the business receives support equivalent to 5%. If the interest rate is 14%, the 50% subsidy would theoretically be 7%, but it is capped at the maximum 6%. The policy applies to loans intended for projects involving technology transfer, application, innovation, or creative innovation. Funds can be used for purchasing machinery, equipment, and production lines; acquiring technology usage rights or ownership; pilot production; hiring experts; training personnel to operate and master the technology; and conducting product testing and inspection. To qualify for support, businesses must demonstrate repayment ability, fulfill all financial obligations, commit to using funds for the intended purpose, and submit a valid application. NATIF will assess the project's feasibility, implementation plan, market potential, competitiveness, productivity, and its potential for long-term impact on the enterprise or production sector before making a support decision. Applications will be prioritized based on several criteria, including having a signed credit contract, a good credit rating with no non-performing loans, and the project's technology falling within the categories of encouraged technology transfer, priority high-tech development, or strategic technologies. Projects with the potential to generate added value of 7% or more will also receive preference. Eligible applications will be evaluated on a first-come, first-served basis through the Fund's online portal until the allocated budget is exhausted. The estimated budget for the first phase is VND 50 billion (approximately $2 million USD). VPBank and BIDV are the partner banks collaborating with NATIF to implement this interest subsidy program.