The Ho Chi Minh City’s People’s Committee has asked the State Bank of Vietnam to consider reducing the refinancing loan interest rate from 2 percent to 0 percent per annum and temporarily suspend debt recovery from the Bank for Investment and Development of Vietnam (BIDV). The proposal aims to ease financial pressure, prevent additional costs, and facilitate ongoing contract negotiations among involved parties.
In line with Government Resolution No. 212/NQ-CP dated July 21, 2025, which seeks to resolve obstacles in the implementation of Phase 1 of the flood prevention project, a climate-adaptive initiative with a total investment of VND10,000 billion (US$381 million), aimed at mitigating flood risks exacerbated by rising sea levels in Ho Chi Minh City, the municipal People’s Committee on August 25 submitted an official report to the Prime Minister and the State Bank of Vietnam.
The city also proposed allowing BIDV to classify the project loan as a Group 1 debt, citing the project’s status as a nationally significant initiative serving socio-economic development. The project is part of the city’s anti-flooding project with a total investment capital of VND10 trillion (US$381 million) to manage high tide and rainwater flooding and adapt to climate change over an area that spans 570 square kilometers along the Saigon River and is home to 6.5 million people.
The Ho Chi Minh City People’s Committee emphasized that approving these proposals would provide a critical foundation for resuming and accelerating construction, ensuring the project’s early completion. Once operational, it is expected to significantly enhance flood control and strengthen the city’s resilience to climate change.
