Production and environmental protection have become a pressing issue for businesses especially when the economy is rapidly developing. It is obvious that technological renovation and investment in environmental protection and production requires a considerable amount of capital. Therefore, the biggest issue for businesses is how they can take a loan with a reasonable interest rate so that they can invest in environmental protection projects. Such kinds of projects need financial support from organizations such as the VEPF.

Currently, VEPF functions to mobilize capital from various sources aimed at providing financial support for environmental protection activities nationwide. Projects that VEPF focus on are in the fields of industrial waste treatment in Industrial Zones (IZs), plant/factory waste water treatment, pollution treatment in craft villages, cement powder, dust, the implementation of clean, and environmentally-friendly and energy saving technology. Since 2004, VEPF has pledged more than VND566 billion for 113 projects in 33 provinces/cities nationwide.

Nguyen Nam Phuong, VEPF director said that domestic businesses are mostly small and medium sized enterprises, while equipment and technology are out of date. Whereas, new technology and environmental treatment technology requires a huge amount of capital investment while producing low economic efficiency and profits. That why businesses owners rarely pay much attention to environmental projects. In addition, high interest rates offered by commercial banks are hindering businesses from accessing loans. To provide more support for businesses, VEPF has offered soft loans for environmental pollution treatment projects in production and clean environmentally-friendly and energy saving projects with low interest rate (5.4 percent), long term and stable loans. Of 113 projects receiving loans from VEPF, five projects have been completed and produced good results in terms of economic, environmental and social perspectives.

In the near future, VEPF will keep supporting interested businesses who want to take loans to implement environment improvement projects. Do Thanh Vinh, director of the Green Environment Limited Company said that to easily access loans, businesses should understand clearly VEPF activities through the mass media and its website. They should estimate their ability to pay back the loans so as to draft a repayment plan and ensure their commitment with VEPF./.
Source: VEN