$112 million for environmental improvement projects

Deputy Minister of Natural Resources and Environment Vo Tuan Nhan said that the Vietnam Environment Fund has financed hundreds of environmental improvement projects nationwide with the cost of $2,600 billion ($112 million).

$112 million for environmental improvement projects

Deputy Minster Nhan made the statement at a meeting to discuss how to finance enterprises to produce environmentally friendly.
The Vietnam Environment Fund is a state financial organization set up by the Prime Minister with the aim of financially supporting firms which pour investment into environment protection. Therefore, any individual firms or organizations having environmental protection projects will enjoy loans with preferential interest of 2.6-3.6 percent a year.
Maximum loan will be 70 percent of the project. Presently, banks will offer no more than VND36.6 billion for a project and VND73.2 billion for an investor.
The minimum loan term is 10 years after the first loan is disbursed. If customers want to borrow a loan with a shorter term, they can borrow loan no more than two years.
Meeting participants said they have been facing difficulties in lending loans because of formalities. Moreover, just a few environment protection projects have been financially funded and some investors are afraid of asking loan from state fund.
Accordingly, the Ministry of Natural Resources and Environment pledged to simplifying formalities to facilitate investors. The Ministry will closely work with local administrations to top prioritize enterprises which have projects to treat discharge; build environment infrastructure in industrial parks and chains of industrial parks, handicraft villages; and collect and treat waste from polluted areas in public locations.
Specially, the Government will enhance financial support on manufacturing projects and importers of new equipment and machine to collect and treat discharge as well as firms having projects on recyclable energy or treating environmental pollution.

BY MINH XUAN - Translated by ANH QUAN

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