After the storm and flood, 250,000 loan customers were affected, with outstanding debt of about 60,000 billion VND.

Photo caption — Deputy Governor of the State Bank of Vietnam Pham Thanh Ha answers the press about capital and tax policies and policies for households and businesses affected by natural disasters and floods. Photo: VGP

Supported production and business loans with a scale of 70,000 billion VND

At the regular Government press conference held on the afternoon of December 6, according to Deputy Governor Pham Thanh Ha, the State Bank of Vietnam has supported businesses and households affected by natural disasters to borrow capital to restore production and business, in which the State Bank has programs with loans at lower interest rates than usual. At the same time, the State Bank of Vietnam has directed credit institutions (CIs), foreign and domestic bank branches to assess the damage situation, review the damage of business organizations to promptly support customers with loans.

“Banks also restructured debt repayment terms for customers; reduced interest rates by 0.5 - 2% for a period of 3 - 6 months for 24,000 customers and so far banks have supported production and business loans with a scale of 70,000 billion VND,” said Mr. Pham Thanh Ha.

According to the proposal of the Vietnam Bank for Social Policies, on December 4, the Government issued Decision No. 2654/QD-TTg on reducing loan interest rates for customers borrowing capital from the Vietnam Bank for Social Policies affected by storm No. 12.

Accordingly, interest rates will be reduced by 2% per year in the last 3 months of the year for about 3 million customers with an expected interest reduction of more than 1,100 billion VND. Regarding storm No. 13 affecting 4 central provinces, the Vietnam Bank for Social Policies is urgently completing procedures to continue submitting to the Prime Minister to continue reducing interest rates by 2% in the last 3 months of the year for about 1 million affected customers, who will be supported.

Budget allocation of over 6,800 billion VND to support damaged localities

Responding to this issue, Deputy Minister of Finance Nguyen Duc Chi said that the consecutive natural disasters that have occurred in the past few months have seriously impacted the socio-economic life of localities. Localities have not only suffered economic and property losses but also human losses.

“At the central level, the Prime Minister has decided to allocate over VND6,800 billion from the central budget in 2025 to support damaged localities, in order to ensure emergency funding to meet the requirements in overcoming the consequences of natural disasters and floods,” said Deputy Minister Nguyen Duc Chi.

According to the Deputy Minister of Finance, regarding policies related to taxes and fees and support policies for organizations, businesses and people affected by natural disasters and floods, the Law on Tax Administration clearly stipulates that organizations, individuals and businesses that suffer damage due to force majeure such as storms and floods will be considered and granted tax deferral and tax payment extension.

In addition, the Law on Corporate Income Tax also stipulates that enterprises are allowed to calculate the cost of force majeure damage caused by natural disasters and floods into the reasonable and valid expenses of the enterprise. “The Law on Personal Income Tax is similar to the Law on Corporate Income Tax, any individual who suffers damage is considered for deduction. In addition, the Law on Natural Resources Tax also has similar provisions for cases of unexpected accidents or natural disasters, which are considered for tax exemption and reduction...”, Mr. Nguyen Duc Chi said.

The Ministry of Finance also proactively has very specific instructions for localities, businesses, organizations and individuals in the area to understand and grasp those regulations so that they can enjoy the State's support policies on taxes and fees and policies to support overcoming the consequences of natural disasters.

In addition, the Ministry of Finance has also directed insurance organizations and businesses in areas where natural disasters occur to coordinate with businesses, organizations and individuals who suffered damage and were insured under contracts, to provide the most specific instructions, create the most favorable and fastest conditions to compensate businesses, organizations and individuals participating in insurance.

“In that process, we will closely coordinate with the Ministry of Agriculture and Environment, all localities with damage, and relevant ministries and branches to consider financial solutions to urgently handle the consequences; at the same time, consider other financial solutions to gradually restore and build business infrastructure, increase resilience to future natural disasters and reduce damage to people and businesses,” said Deputy Minister Nguyen Duc Chi.

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