Established in 2007, Binh Duong Science and Technology Development Fund (BIFOSTED) has quickly upheld its role in supporting enterprises to innovate production technologies, contributing to enhancing their value of products. 

Industrial fans being manufactured at Nghe Nang Co.Ltd.

“Tonic”

Kim Thanh A Co.Ltd. faced difficulties to seek investment capital to innovate its production lines for better competition as of late 2012. With simple procedures, the company received financial support from BIFOSTED to implement its project of technology innovation to improve product quality at the requirements of clients at home and abroad.

One of BIFOSTED’s successful projects over the past time was to support investment capital for Nghe Nang Co.Ltd. In 2010, it is very difficult for the company to seek investment capital for investing an automatic production line for better development. At that time, BIFOSTED agreed to provide VND2bln in loan for the company to realize the plan.

Luu Tri, Director of Nghe Nang Co.Ltd. said that with BIFOSED’s above support, the company has raised its factory’s capacity to 300% and its localization rate to 90%. Thanks to technology innovation opportunely implemented, the company has not only dominated domestic market, but also won great victories at foreign expos on industrial products.

BIFOSTED gave financial support for many other sci-tech innovation projects from Phuong Vy Co., Danh Le girdle cake cooperative, Dinh Hoa Orchid Club, Viet Xanh Co., Saigon River Composite Co.,…over the past five years. Particularly, 12 province-based enterprises got VND20.5bln in loan with the interest rates of 3%-7% within 3 or 4 years from BIFOSTED. This was seen as “tonic” for enterprises because lending interest rate is at low level with flexible term  in line with BIFODTED’s criteria: “Not-for-profit operation, lending with preferential interest rates and non-refundable support for advanced sci-tech projects”.

Opportunities for technology innovation

As a locality with strong development in industrial manufacture, Binh Duong has absorbed more production projects. Among them, there are many technologically backward companies that have not met market’s demand. The demand for technology innovation among province-based enterprises is very urgent. This is one of reasons leading to the establishment of BIFOSTED. In fact, BIFOSTED has always welcomed enterprises that lack investment capital for technology innovation.

BIFOSTED has also provided VND345mln in loan for 21 province-based enterprises to execute their projects on building up the advanced management systems of ISO 9001, ISO 1400, ISO 22000, OHSAS, HACCP…This is a driving force for these enterprises to enhance their competitive ability and product value.

To get loans from BIFOSTED, enterprises must have flexible projects that apply new technologies in line with the province’s policies. They must also have assets for guarantee. Lending level is around 70% of the total value of project and does not exceed VND2bln for a project with the maximum term of four years. Meanwhile, support level for each project, subject on new technologies is not over 30% of total cost and not over VND500mln.

Ho Thanh Nhan, staff of BIFOSTED said: “We always welcome enterprises that have demand for getting loans for technology innovation with preferential interest rates. It is known that new technology is the index of products’ competitive value. Thus, we always get ready to pay way for enterprises that have demand to get loans or ask for financial support to innovate technologies”.

Reported by Khanh Vinh-Translated by K.T