500,000 billion VND credit package: How to unblock it?

Overview of the working session

Simplify disbursement procedures

According to the latest direction of the Prime Minister, some large banks will have a credit package of 500,000 billion VND with interest rates 2-3% lower than normal, especially procedures must be simple for businesses investing in infrastructure and digital technology.

To effectively implement the VND500,000 billion credit package, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that this is a difficult problem in the context of many preferential credit packages being implemented, some programs are well disbursed, but there are still credit packages stuck because they do not meet loan conditions. In addition, there are also some issues related to projects such as BOT (Build - Operate - Transfer) transportation projects that are stuck, not creating confidence for investors and banks in capital support.

According to the Deputy Governor, banks have committed to participate, basically enough 500,000 billion VND and there are many incentives for projects in terms of preferential interest rates, medium and long-term loans.

"In fact, the nature of bank capital is short-term capital. To ensure the safety of the banking system's operations, the ratio of short-term capital for medium- and long-term loans is gradually decreasing. This is also to meet international safety standards such as Basel II and Basel III. The revised Law on Credit Institutions also has many regulations related to ensuring the safety of banks' operations in lending. Therefore, medium- and long-term lending is also an incentive from the bank. Banks are also responsible for agreeing to participate in this credit package," the Deputy Governor emphasized.

For the credit package to come into effect, the Deputy Governor said that some conditions are needed, that is, ministries and branches need to have plans and orientations on capital needs for projects in each stage, capital needs from the budget, capital from banks, etc. From there, the banking sector will also be proactive in preparing capital sources for lending.

According to Mr. Pham Luu Hung, Chief Economist of SSI, the previous period of banks being "hesitant" to lend to infrastructure projects, BOT... is over. Along with the 2025 Public Investment Law taking effect from the beginning of the year and the Government's determination to remove project obstacles to promote investment, the investment - completion and collection stages of the project are accelerated. Investors can receive money and repay debts on time, so banks will continue to accelerate lending to this sector.

Regarding the VND500,000 billion credit package in particular and preferential credit packages in general, according to economic experts, the top criterion is to build conditions for credit loans that are suitable to the reality of the business. The framework for accessing financial capacity must ensure current support factors and accompany the business to achieve the expectation of promoting business development and ensuring the ability to repay loans in the future.

Lending responsibilities need to be clear to reassure banks

Previously, some banks shared that in recent years, the bank has been investing and providing credit for many key infrastructure projects. Typically, Vietcombank has participated in financing the Lao Cai - Vinh Yen Power Transmission Line Project, Nhon Trach 3 and 4 Power Plants, and Long Thanh International Airport. Meanwhile, VIB also finances infrastructure projects such as BOT, power generation, and transmission, most recently participating in financing part of the 500kV power line project.

VIB representative said that the bank is ready to deploy a credit package of 5,000 - 10,000 billion VND with preferential interest rates about 1% lower than the normal level, in order to accompany the State's key policies. "The bank is ready to support businesses, especially in terms of interest rates, but it needs to be clear about the responsibility in lending so that banks can confidently deploy it," Ms. Phung Thi Binh, Deputy General Director of Agribank affirmed.

According to Vietcombank General Director Le Quang Vinh, in order to provide effective support, businesses should consider building a capital contribution and benefit sharing mechanism, instead of applying traditional lending methods.

In addition to preparing capital for lending to the above priority customers, banks are proactively implementing early support policies for customers affected by the new US tax policy. In cases that are widely affected, some banks have proposed debt restructuring mechanisms, maintaining the debt group; at the same time, reducing interest rates and fees to share difficulties with customers.

Regarding the lending mechanism, the representative of the State Bank said that it will mainly use resources from commercial banks. Banks will balance mobilized capital to lend appropriately. Loans within the framework of this credit package must still ensure credit conditions, without lowering standards, but there will be support mechanisms regarding interest rates, terms, co-financing mechanisms, etc.

The State Bank encourages the expansion of participation by more banks in the spirit of big banks doing big, small banks doing small. In particular, state-owned commercial banks need to promote their leading role and demonstrate greater responsibility to the economy.

Regarding lending interest rates, commercial banks proactively determine and publicize the applicable interest rates and interest calculation methods for borrowers in each period, in the spirit of supporting customers to reduce costs and promote investment in infrastructure and digital technology. Regarding disbursement time, according to the Deputy Governor, the program lasts until 2030 or until all capital is disbursed, whichever comes first.

According to Tin Tuc Newspaper

Source: https://baohoabinh.com.vn/12/200524/Goi-tin-dung-500.000-ty-dong-Lam-the-nao-de-khoi-thong.htm