State Bank of Vietnam moves to roll out VND 500 trillion preferential credit package for infrastructure and digital technology investment

The State Bank of Vietnam has convened a working session with relevant ministries and four state-owned commercial banks to operationalise a VND 500 trillion preferential credit package for enterprises investing in infrastructure and digital technology, following the Prime Minister’s direction to develop a large-scale programme supporting science and technology, innovation and strategic infrastructure. Participating banks have committed capacity broadly sufficient to reach the VND 500 trillion envelope, and the central bank indicated it will adjust relevant rules to support lenders taking part. The package is expected to feature preferential interest rates and an emphasis on medium- and long-term lending, which the State Bank of Vietnam framed as challenging given banks’ predominantly short-term funding base and tightening prudential constraints on using short-term funds for longer-tenor loans, linked to Basel II and Basel III alignment and provisions in the amended Law on Credit Institutions. The central bank also stressed that ministries need to provide phased plans for project pipelines and funding needs, including expected shares from the state budget and bank credit, to help banks plan funding and disbursement; Agribank’s chair highlighted that the preferential pricing approach should account for inflation, interest-rate pressures and exchange-rate developments. The State Bank of Vietnam expects to detail its regulatory adjustments in forthcoming circulars and guidance, and has already sent coordination letters to the Ministries of Construction, Industry and Trade, and Science and Technology. Ministry representatives at the meeting agreed to report back with project financing plans to support implementation.