The State Bank of Vietnam (SBV), through its Standing Deputy Governor Dao Minh Tu at a government review of three national target programmes, outlined how monetary and banking policies are being used to support new rural development, sustainable poverty reduction, and socio-economic development in ethnic minority and mountainous areas. SBV reported that more than 10 million customers are benefiting from banking-sector credit products, with outstanding lending in communes nationwide exceeding VND 2.2 quadrillion. SBV highlighted the use of flexible monetary policy coordination with fiscal policy and credit steering to priority and production sectors, including a forestry and fisheries credit programme of up to VND 100 trillion and policy lending via the Vietnam Bank for Social Policies (VBSP). Policy credit linked to the national target programmes exceeded VND 376 trillion, covering around 6.8 million customers with outstanding loans, while preferential lending for ethnic minority and mountainous areas under Decree 28/2022 totalled over VND 2.4 trillion for more than 49,000 borrowers. SBV also flagged low implementation of Decree 28/2022 preferential credit, with disbursement reaching VND 2.317 trillion out of VND 9 trillion (25.7%) in 2022–2023 and VND 2.401 trillion out of VND 19.727 trillion for 2021–2025, citing slow issuance of implementing guidance, delays in beneficiary list approvals, constraints around land allocation and documentation, and the absence of allocated lending resources for VBSP for 2024–2025. Looking ahead, SBV will continue reviewing and proposing amendments to Decree 55/2015 on agricultural and rural credit, pending a formal appraisal from the Ministry of Justice before submission to the government, and will review updates to Decree 28/2022 after the Prime Minister approves amendments to Decision 1719/QD-TTg. SBV also urged the Ministry of Finance and the Ministry of Ethnicities and Religion to secure funding for VBSP to implement Decree 28/2022 lending in 2024–2025, and called for early work on revising and funding preferential credit policies for 2026–2030, alongside faster local project approvals and land provisioning to enable disbursement.
State Bank of Vietnam 2025-03-31
State Bank of Vietnam reports over VND 2.2 quadrillion in commune-level lending under national target programmes and flags funding gaps for Decree 28 preferential loans
The State Bank of Vietnam (SBV) uses monetary and banking policies to support rural development, poverty reduction, and socio-economic growth in ethnic minority areas, benefiting over 10 million customers. SBV reported challenges with Decree 28/2022, citing low disbursement rates due to slow guidance issuance and resource allocation issues. SBV plans to review and propose amendments to relevant decrees and urged the Ministry of Finance and the Ministry of Ethnicities and Religion to secure funding for future lending initiatives.