In addition to securing capital for lending to priority customers, banks are actively implementing policies to assist customers impacted by the US Government's new tax policy, and to promote investment in infrastructure development and digital technology.

Timely credit package
After a meeting with Deputy Prime Minister Ho Duc Phoc last April, the State Bank of Vietnam (SBV) recently held a meeting with commercial banks to implement a VND500,000 billion credit package to ensure effectiveness and substance. Accordingly, commercial banks with large capital potential such as Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Industry and Trade of Vietnam (Vietinbank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Bank for Agriculture and Rural Development of Vietnam (Agribank), Military Commercial Joint Stock Bank (MB), International Commercial Joint Stock Bank (VIB)... are ready to participate in this large-scale credit package.
Currently, banks are actively involved in financing several key national infrastructure projects. For example, Vietcombank has financed the Lao Cai - Vinh Yen power transmission line project, the Nhon Trach 3 and 4 power plants, and the Long Thanh International Airport. On the other hand, VIB is supporting infrastructure, production, and power transmission projects, most recently participating in financing part of the 500kV power line project. A representative from VIB stated that the bank is prepared to offer a credit package ranging from 5,000 to 10,000 billion VND, with preferential interest rates about 1% lower than the usual rates, to support the government's key policies.
Ms. Phung Thi Binh, Deputy General Director of Agribank, emphasized that the bank is ready to assist businesses, particularly concerning interest rates, but it is essential to clarify responsibilities in lending. This clarity will allow banks to implement their support with confidence. According to Mr. Le Quang Vinh, General Director of Vietcombank, the banking industry sees credit as an effective tool to support businesses. However, for banks to contribute effectively, especially to those undergoing technological transformation and innovation, there needs to be a mechanism for capital contribution and benefit sharing, rather than relying solely on traditional lending methods.
In addition to securing capital for lending to these priority customers, banks are also proactively developing policies to provide early support to customers affected by the new tax policy implemented by the U.S. government. For businesses significantly impacted by this tax policy, some banks are suggesting the establishment of a debt restructuring mechanism that maintains the same debt category, as well as waiving or reducing interest rates and fees to alleviate difficulties for customers. Branch leaders from banks in Binh Duong, including Vietcombank, VietinBank, BIDV, Agribank, and MB, indicated that they are currently awaiting specific instructions from their headquarters to implement policies for businesses and borrowers in need of credit capital.
Joint implementation
According to bank leaders, investment in infrastructure is one of the driving forces to achieve the 16% credit growth target of the entire banking industry in general and of banks in particular in 2025.
Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, said this is a credit package with a preferential mechanism with a minimum period of 2 years. Capital is not taken from the State budget or foreign sources but is completely mobilized by commercial banks and self-balanced by reducing costs, interest rates and extending loan terms. To date, 21 commercial banks have registered to participate in the full limit of VND500,000 billion, equivalent to about USD20 billion, to support investment in infrastructure development and digital technology, two key areas in the sustainable development strategy of the country's economy. Specifically, 4 state-owned commercial banks registered 60,000 billion VND each, 12 large-scale private banks registered 20,000 billion VND each, and 5 smaller-scale banks registered 4,000 billion VND each. “In particular, infrastructure lending is often a large-scale capital project, so commercial banks must jointly finance it, not just one bank. Currently, there are many large-scale national projects, not to mention other projects that are in dire need of investment resources," said Mr. Dao Minh Tu.
According to the SBV leader, investment in infrastructure and digital technology is fundamental and decisive in achieving the double-digit growth target set by the Government this year. However, there are two issues that need to be raised: compared to other credit packages, this 500,000 billion VND package has 2 characteristics: First, when granting preferential loans, regardless of the amount of incentives, it is necessary to clearly identify the subjects that need investment and preferential loans to concentrate resources. Second, in the digital technology field, choosing the right components and projects to invest in is also an urgent requirement.
The second factor is that infrastructure deployment always takes a long time, 5 years, 10 years, while commercial banks mainly mobilize short-term capital. Therefore, it is necessary to have a structure and calculate the story to ensure a plan for capital supply and reasonable use of capital, while ensuring the safety of the credit system. On the other hand, it is necessary to coordinate with relevant ministries and branches, including the Ministry of Industry and Trade, the Ministry of Construction, and the Ministry of Science and Technology to clarify the subjects, sectors, or projects that need support from this package.
We are working directly with ministries such as the Ministry of Industry and Trade, the Ministry of Construction, the Ministry of Science and Technology, etc. to specifically identify the list of projects and preferential loan beneficiaries in accordance with the Government's requirements. In the coming days, the banking industry will deploy the credit package according to the set schedule and direction." (Mr. Dao Minh Tu, Deputy Governor of the State Bank) |
Reported by Thanh Hong - Translated by Ngoc Huynh