Bank credit contributes to restoring production and business in flood-hit areas

The combination of debt restructuring solutions, interest exemptions and reductions, and new loans has significantly contributed to quickly restoring production, supporting businesses to maintain operations, and helping local people stabilize their lives after the recent historic floods.

The historic flood from November 16 to 22, 2025, has severely affected the operations of credit institutions (CIs) in the two provinces of Khanh Hoa and Lam Dong, under the management of the State Bank of Vietnam, Branch Region 10. According to preliminary statistics, the extent of damage to facilities and credit operations is very large, putting pressure on the entire banking system in the region.

In Khanh Hoa, a transaction point was flooded and damaged, along with 63 specialized equipment affected, with total damage estimated at about 10.2 billion VND. Meanwhile, Lam Dong also recorded damage to one piece of equipment with an estimated value of about 0.2 billion VND.

Notably, production and business activities in both localities have been seriously disrupted, especially in the fields of agriculture , trade, services, tourism and residential areas along rivers and streams. Up to now, because traffic in many places is still cut off, credit institutions have not been able to fully assess the specific extent of damage.

By the end of November 2025, preliminary data showed that a total of 2,994 customers in Khanh Hoa and Lam Dong were directly affected by the floods, with an estimated affected debt balance of VND 2,707 billion. Of these, Lam Dong had a higher number of damaged customers (1,754 customers), but a lower affected debt balance (VND 920 billion). On the contrary, Khanh Hoa had fewer customers but the affected debt balance was much higher, up to VND 1,787 billion. On the part of credit institutions, the two banking systems that recorded the greatest level of damage in the recent floods were Agribank and BIDV.

The recent historic floods caused heavy damage to many businesses and people in Khanh Hoa and Lam Dong.

Mr. Bui Huy Tho, Director of the State Bank of Vietnam Branch in Region 10, said that as soon as the flood occurred, bank branches and People's Credit Funds in the area promptly activated response plans. After the flood receded, they focused on reviewing and calculating the extent of damage to deploy support solutions in accordance with the direction of the State Bank.

The State Bank of Vietnam, Regional Branch 10, has requested credit institutions to quickly review all loans of people and businesses that have suffered losses; proactively restructure debt repayment terms, waive and reduce interest rates, reduce service fees and consider reducing interest rates according to their authority. In addition, based on the recovery capacity of each project and each production and business plan, credit institutions are required to consider granting new loans so that customers have the conditions to reproduce and restore operations. In addition, banks are also directed to promote consumer loans with simple procedures, supporting people, especially poor and near-poor households and people in remote and isolated areas to soon stabilize their lives after the losses.

At the Vietnam Bank for Social Policies (VBSP) Khanh Hoa branch, the Central Government has promptly temporarily supplemented VND120 billion to the branch to meet the urgent loan needs of affected households. Mr. Le Van Thanh, Deputy Director of the VBSP Khanh Hoa branch, said that the unit has been actively reviewing loan needs and proposing to supplement capital entrusted by the locality to support poor households and policy beneficiaries. In cases of severe damage, the VBSP will apply a mechanism to handle risky debt to reduce debt repayment pressure and create conditions for people to quickly restore their livelihoods.

In parallel, with overcoming the consequences of natural disasters, the banking sector in the area has deployed many solutions to remove difficulties for customers.

In Lam Dong, the provincial branch of the Vietnam Bank for Social Policies recorded more than 900 affected borrowers with a total outstanding debt of about VND72 billion. The unit has also been allocated VND150 billion from the Central Government and VND300 billion from local entrusted capital, thereby speeding up the disbursement process to the right subjects affected by the floods.

Meanwhile, Agribank Khanh Hoa has also proactively activated solutions to support customers. Director of Agribank Khanh Hoa, Mr. Le Anh Tuan, said that the bank has deployed a series of practical measures to support customers who suffered damage to people, property, crops, livestock and production facilities. Branches in the entire system are required to urgently inventory the damage and develop a plan to promptly support customers in flood-affected areas.

As of November 28, 2025, the banking sector in Khanh Hoa and Lam Dong has implemented many practical support solutions for customers who have suffered losses. There are 15 customers whose debt repayment terms have been restructured, with a total restructured debt balance of VND 92.3 billion, mainly concentrated at Agribank and BIDV. Of these, 11 customers in the agriculture, forestry and fishery sectors have had their principal and interest repayment terms restructured with a total amount of VND 75.3 billion; 4 customers in the trade and service sectors have had their debt restructured for VND 17 billion...

Timely disbursement of capital helps people in flood-affected areas quickly restore their livelihoods and stabilize their lives.

Notably, 434 customers were exempted from interest on loans with a total amount of 347 million VND. Of which, 427 agricultural customers were exempted from 175 million VND; 7 commercial and service customers were exempted from 172 million VND. This is an important source of motivation to help people and businesses reduce their immediate financial pressure.

In addition, banks have also provided new loans to support production recovery for 39 customers, with a total expected disbursement of VND95.3 billion. The lending interest rate is 1 to 2% lower per year than the current rate, helping people and businesses have more resources to regenerate working capital to quickly restore production and business activities.

In general, the initial results show that the credit institutions in the area of ​​the State Bank of Vietnam branch in Region 10 have proactively, seriously and flexibly implemented support measures in accordance with the direction of the State Bank of Vietnam. The combination of debt restructuring solutions, interest exemption and reduction and new loans has contributed significantly to the rapid recovery of production, supporting businesses to maintain operations and helping people to stabilize their lives soon after the recent historic floods.

Source: https://thoibaonganhang.vn/tin-dung-ngan-hang-gop-phan-khoi-phuc-san-xuat-kinh-doanh-vung-lu-174585.html