The State Bank of Vietnam convened the drafting team for a Government decree that would provide interest-rate support from the state budget to private-sector enterprises, household businesses and individual businesses borrowing from commercial banks to implement green and circular projects and apply environmental, social and governance (ESG) standards. The central bank plans to submit the draft to the Government in December, and would follow up with a circular guiding commercial banks on lending under the scheme once the decree is issued. Work on the decree has included establishing a drafting team, technical meetings with commercial banks and collection of comments from 29 of 37 drafting-team members. The revised draft (nine articles) sets out eligibility and conditions, the duration and interest-subsidy level, funding sources (annual state budgets alongside commercial-bank lending), budgeting and settlement procedures, recovery of amounts already supported, implementation arrangements and effectiveness; it also includes a rule under which a borrower removed once from the Ministry of Natural Resources and Environment’s published list of eligible green, circular or ESG projects would not receive interest support for the life of the project. The draft also proposes delivering subsidies via local budget allocations, with commune-level People’s Committees paying eligible customers directly rather than routing support through commercial banks, and discusses setting the policy window for loan disbursements through end-2030 with a post-2030 review for any further phase. Further formal written consultation with ministries, credit institutions and local authorities is envisaged ahead of appraisal and submission.
State Bank of Vietnam 2025-09-10
State Bank of Vietnam advances a draft government decree on state-budget interest subsidies for private-sector green and ESG loans
The State Bank of Vietnam is drafting a Government decree to support private-sector and individual businesses borrowing for green and circular projects, aiming to submit it by December. The decree outlines eligibility, subsidy levels, and funding sources, proposing subsidies via local budgets and setting a policy window through 2030. Further consultations with ministries and credit institutions are planned before final submission.