21 banks join forces to deploy 500,000 billion credit package

The above information was stated by Permanent Deputy Governor of the State Bank of Vietnam Dao Minh Tu at the regular Government press conference for April 2025 held on the afternoon of May 6.

According to Deputy Governor Dao Minh Tu, implementing the Prime Minister 's direction, the State Bank has been actively building and perfecting the mechanism to implement the largest credit package ever with a total value of up to VND500,000 billion, equivalent to USD20 billion.

"This is a strategic step, demonstrating a strong determination to promote infrastructure and technology development, two fundamental areas for long-term sustainable economic growth," said Mr. Tu.

Deputy Governor Dao Minh Tu. (Photo: VGP)

Based on the strong direction from the Government, the State Bank clearly identified that this is not simply a credit policy but an important macro management tool, aiming to create financial resources for businesses to invest in key infrastructure and digital technology. This is also a premise to achieve the target of double-digit GDP growth in the near future.

"In April, the State Bank of Vietnam worked directly with 21 commercial banks to discuss the implementation plan of this credit package. Of which, 4 large state-owned commercial banks (Big4) including Vietcombank, VietinBank, BIDV and Agribank were identified as the main force, each bank registered to participate with a level of 60,000 billion VND. In addition, 12 large-scale private banks registered at 20,000 billion VND/bank and 5 smaller-scale commercial banks registered at about 4,000 billion VND/bank" , said Deputy Governor Dao Minh Tu.

The VND500 trillion credit package will focus on prioritizing businesses investing in two key areas: infrastructure and technology. In particular, projects in the fields of digital technology, digital transformation, smart manufacturing, etc. will receive preferential interest rates at least 1% lower than the current average. At the same time, the preferential interest rate period will be extended to at least 2 years, creating favorable conditions for businesses to effectively implement projects.

A notable point is that the VND500,000 billion credit package will not use the State budget or foreign loans at all. Instead, commercial banks will use their mobilized resources to provide credit, on the basis of restructuring loans, extending loan terms, and co-financing large projects. With this form, the credit package not only ensures flexibility but also reduces the budget burden, while still strongly supporting areas that need medium and long-term capital.

However, Deputy Governor of the State Bank of Vietnam Dao Minh Tu also frankly pointed out that there are two key issues that need to be clarified before widely disbursing the VND500,000 billion credit package.

Firstly, although the capital demand in the infrastructure and technology sectors is very large, it is necessary to clearly identify which specific subjects will be given priority for loans. The allocation must closely follow the Government's policy and Resolution 57, ensuring that it is not spread out, avoids duplication, and ensures the highest efficiency in capital use. Because, in reality, among hundreds of thousands of projects, not all projects are suitable or urgent to be supported.

Second, the issue of balancing medium- and long-term loans from short-term capital sources of the banking system is also a big challenge.

In reality, commercial banks are currently mobilizing mainly short-term capital, so the problem of ensuring liquidity and system safety is urgently posed. Therefore, the State Bank of Vietnam coordinates closely with relevant ministries and branches such as the Ministry of Industry and Trade, the Ministry of Construction, the Ministry of Science and Technology to review and clearly identify key projects and groups of enterprises that really need to access this preferential credit package.

Lending for infrastructure projects with terms of 5 to 10 years requires flexible coordination while complying with the principles of credit system safety.

This is the reason why the State Bank actively requested ministries and branches to soon issue documents specifying the list of projects, industries and priority subjects, in order to help banks feel secure in implementation and minimize liquidity risks.

"This May, the State Bank and commercial banks will continue to step up preparations to soon put the credit package into practice according to the Government's direction," Mr. Tu emphasized.

Overview of the regular Government press conference in April 2025. (Photo: VGP)

The VND500 trillion credit package clearly demonstrates the Government’s flexible and proactive management orientation. Identifying the right target, implementing at the right time and allocating capital effectively will be prerequisites to achieving the dual goal of promoting growth while ensuring macroeconomic stability.

Recently, the Government and the Prime Minister have shown special interest in this program with the aim of supporting businesses. The Government has held meetings and worked with strong instructions, requiring functional agencies from central to local levels to closely coordinate to remove difficulties for businesses, creating momentum for economic development.

Therefore, relevant ministries and branches need to coordinate to clarify the list of priority investment projects, the ratio of state capital and socialization, accurately identify the subjects, scope, and clear investment plans, at least need to have estimated data close to reality, from which the State Bank as well as commercial banks can calculate the balance of capital sources, ensuring the credit package goes in the right direction (but currently not available).

"This credit package is a support policy, but if there is a lack of synchronization between budget capital and credit capital, the consequence is that the entire banking system will be pushed into a high-risk position. Therefore, there needs to be close, timely, and highly responsible coordination between ministries and branches so that the credit package can be truly effective," Deputy Governor Dao Minh Tu emphasized.

Thanh Lam

Source: https://vtcnews.vn/21-ngan-hang-hop-suc-trien-khai-goi-tin-dung-500-000-ty-ar941781.html