The State Bank of Vietnam and 21 commercial banks are preparing to roll out a VND500 trillion (US$19.2 billion) credit package to finance key infrastructure and digital technology projects, aiming to achieve double-digit GDP growth and ensure long-term economic resilience.

The plan was announced by State Bank of Vietnam (SBV) Deputy Governor Dao Minh Tu at a government press briefing this week. He said the credit package will provide critical funding for businesses investing in large-scale infrastructure and digital transformation projects, including smart manufacturing.

A BIDV branch in Hanoi. Photo: Pham Hung/The Hanoi Times

Of the 21 commercial banks, four state-owned lenders - Vietcombank, VietinBank, BIDV, and Agribank - have pledged VND60 trillion ($2.3 billion) each; 12 large private banks have signed up to contribute VND20 trillion ($770.5 million) each; while five other banks commit about VND4 trillion ($154 million) each. 

"The banking sector is finalizing preparations throughout May so that the credit package can be launched as soon as possible in accordance with the government's instructions," Tu said.

He said this is not just a credit policy, but a macroeconomic management tool to promote growth without drawing on the state budget or foreign loans.

Instead, the banks will mobilize the capital by restructuring their loan portfolios and adjusting loan maturities. Interest rates on loans under this package are expected to be at least 1% lower than the current average rate of 6.3% and will be maintained for two years.

“This mechanism ensures flexibility and reduces fiscal pressure while offering critical support to sectors in need of medium-and long-term capital,” Tu said.

The package will target eligible projects identified by commercial banks based on recommendations from government agencies and local authorities to align with the goals set out in the Politburo's Resolution No. 57 on innovation and science and technology, and to ensure efficient and targeted use of funds.

Tu stressed the importance of this selective approach and reminded banks of good rule-based lending to ensure liquidity and the overall stability of the banking system.