The SBV on August 7 issued Document No. 7125/NHNN-TD on the implementation of a credit program targeting economic growth drivers and small and medium-sized enterprises (SMEs).

The central bank said the government's goal of achieving double-digit economic growth would require significant resources. The banking system therefore needed to continue implementing measures on funding, interest rates and access to credit, particularly for SMEs.

The SBV asked commercial banks to proactively cut costs and allocate resources to develop suitable credit programs, products and packages, in a spirit of supporting and sharing with individuals and businesses.

Banks were specifically asked to prioritize the credit program targeting economic growth drivers and SMEs.

Lending rates at least 1 percentage point lower

Eligible borrowers will include SMEs, as well as businesses and individuals engaged in production and business activities in priority sectors and industries identified as growth drivers.

These include agriculture and rural development, supporting industries, high-tech enterprises, exports, the digital economy, artificial intelligence (AI), semiconductors, processing and manufacturing, and projects included in the legally defined green classification list.

Notably, the SBV has set a specific requirement for preferential lending rates.

Under the program, lending rates on Vietnamese dong loans must be at least 1 percentage point a year below the lending bank's average rates for loans of the same maturity - short, medium and long term - applicable at the relevant time.

Banks are also required to waive or reduce service fees where applicable, in accordance with regulations and taking into account the scale of operations and resources of each credit institution.

If a customer meets the eligibility criteria for multiple preferential credit programs or packages, banks may allocate resources to apply one or more support policies, based on the customer's needs and the bank's capacity.

Under the central bank's Document 7125/NHNN-TD, commercial banks must develop and publish credit programs, products or packages for immediate implementation from August 2026.

Loan appraisal and lending decisions, as well as debt classification, provisioning and risk management for loans under the program, will continue to comply with existing regulations.

The SBV asked state-owned commercial banks to take the lead in allocating resources and implementing preferential credit programs for growth drivers and SMEs.

Other commercial banks are encouraged to participate and proactively design suitable products and credit packages based on their conditions and available resources.

The SBV also requires banks to publish interest rates for the programs and credit packages on their websites to ensure transparency and make it easier for businesses and individuals to access funding.

The SBV's regional branches will monitor banks' implementation in their respective areas, coordinate with local authorities and agencies to address difficulties, and report issues beyond their authority to the SBV Governor.

The central bank will also step up inspections and supervision of deposit and lending rates and take strict action against violations involving interest rates and unhealthy competition for deposits.

At a meeting chaired by Prime Minister Le Minh Hung with the SBV and commercial banks on Thursday, the SBV stated that it would take credit institutions' compliance with its directives on reducing lending rates into account when allocating credit growth quotas for 2027.

Under this approach, credit institutions that fail to comply with the SBV's directives could have their credit growth "room" reduced.