According to the draft decree, private businesses, individuals and business households implementing green development projects, adopting the circular economy, or applying Environmental, Social, and Governance (ESG) standards are set to receive a 2 percent interest rate subsidy from the state budget.
Deputy Governor of the State Bank, Doan Thai Son, announced the policy during the Government’s regular press conference in September, held on the afternoon of October 5. He said the State Bank is preparing to submit the decree to the Government for promulgation. The policy aims to support private sector entities investing in green development, circular production models, and ESG-compliant projects.
Simultaneously, the Ministry of Finance is collecting feedback on a related draft decree that provides similar interest rate support through state financial funds outside the budget. Under the draft, eligible borrowers can receive a 2 percent reduction in loan interest rates when accessing capital from sources such as the Small and Medium Enterprise Development Fund, the Vietnam Environmental Protection Fund, the Farmers Support Fund, and other central or local funds. Funding for these incentives will be sourced from public investment capital within central and local budgets to ensure feasibility, stability, and long-term sustainability.
To qualify for the interest rate incentives, projects must strictly adhere to criteria for green development, circular economy, and ESG standards. The list of eligible projects will be made public on the Electronic Information Portal of the Ministry of Agriculture and Environment.
This interest rate support policy is a direct move to implement Resolution No. 68-NQ/TW of the Politburo, which encourages the private sector to participate more deeply in the green transition and sustainable development process.
This initiative follows the Prime Minister’s issuance of a green taxonomy in July 2024, which identified 45 types of eligible projects across energy, transportation, construction, agriculture, and industry. The Ministry of Agriculture and Environment is now drafting detailed guidelines on the circular criteria and the ESG framework to deploy the support mechanism soon.
