Commercial banks must roll out this program of lending rate reduction right in August 2026, simultaneously publicizing interest rates and credit packages to ensure absolute transparency and facilitate smoother capital access for customers. State-owned commercial banks are commanded to take the lead in allocating resources to get the ball rolling, while other financial institutions are strongly encouraged to participate depending on their specific conditions and capacities.
Implementing this directive, Agribank has recently launched a preferential credit program scaling up to VND70 trillion (US$2.68 billion) extending until 2028, featuring interest rates dropped by 1 to 2 percentage points per annum compared to the average lending rate of the same term.
The program funnels capital directly into small and medium-sized enterprises (SMEs), prioritizing sectors such as agriculture, rural development, supporting industries, high technology, exports, the digital economy, artificial intelligence, semiconductors, manufacturing, and projects falling under the green classification portfolio.
NCB has also cut its interest rates by 0.5 percent per annum across all loan packages for both individual and corporate clients starting August 11, strategically prioritizing capital for green projects, the digital economy, construction, building materials, and key national infrastructure works.
Numerous financial experts argue that the aforementioned move is widely expected to contribute to slashing capital costs and unblocking credit flows, ultimately laying the groundwork for enterprises to reinvest, expand production, and aggressively drive growth.
For CEO Nguyen Quang Huy of the Finance and Banking Faculty at Nguyen Trai University, the SBV’s policy holds profound positive significance. He noted that it doesn’t just offer vital support, but also injects additional momentum into exports, the digital economy, artificial intelligence, semiconductors, supporting industries, and green initiatives. According to his analysis, the most significant impact is helping enterprises decisively cut their capital expenditures and substantially improve their cash flows.
The subsequent savings garnered from these reduced borrowing costs can be seamlessly reinvested into raw materials, cutting-edge technology, and broader production capacities. When this cash flow is injected back into core manufacturing and business operations, cheaper capital can effectively help companies boost their output, secure more orders, generate employment, and raise incomes, thereby stimulating consumer spending, driving up revenue, and bolstering debt repayment capabilities.
“Over the long haul, banks can strategically accept a partial reduction in immediate profits to retain their clients, elevate overall credit quality, and forge highly sustainable revenue streams,” CEO Huy explained.
Even though system-wide credit continues an upward trajectory, securing accessible capital at reasonable costs remains a pressing issue drawing intense concern from the business community.
According to the SBV, by the end of July 2026, total outstanding debt across the economy had reached nearly VND20.3 quadrillion ($776.7 billion), marking an 8.98-percent increase compared to late 2025. Outstanding enterprise credit hit almost VND11 quadrillion ($421 billion), accounting for 53.3 percent of the total debt pool. Remarkably, private enterprise debt alone surpassed VND9.1 quadrillion ($348 billion).
Driven by ambitious growth targets that necessitate massive capital, numerous businesses report severe difficulties accessing credit, frequently lamenting that actual borrowing rates remain stubbornly high.
For Vice Chairman Nguyen Quoc Ky of the HCMC Union of Business Associations (HUBA), the harsh reality of risk assessment paints a grim picture. He pointed out that certain businesses deemed high-risk are subjected to exorbitant rates hovering around 14 to 15 percent annually. If private capital costs sit between 12 and 15 percent, businesses can’t efficiently convert those funds into tangible output for sustainable growth.
For Director Nguyen Van Hung of Hasa Bio Foods JSC in Tan Thuan Ward of HCMC, securing affordable financing is an ongoing uphill battle. Since his company was established just over a year ago, it’s primarily relying on short-term working capital loans carrying a steep interest rate of 11 to 12 percent per annum. Consequently, he hopes to successfully access preferential credit programs specifically tailored for export-oriented firms to slash capital costs.
Similarly, a garment executive in Hung Long Commune of HCMC shared his financial strain. He stated they’re currently borrowing roughly VND20 billion ($765,000) for machinery at 10.4 percent per annum. However, upon refinancing, the rate abruptly jumped to 15 percent, causing overhead to skyrocket and forcing the business to meticulously recalculate its operational scale.
According to ACB CEO Tu Tien Phat, enterprises urgently need to diversify capital access strategies. Import-export businesses boasting steady foreign currency revenues can borrow US dollars at around 4 percent annually. Factoring in exchange rate fluctuations of 1 to 1.5 percent, maximum costs peak at a manageable 6 percent.
Furthermore, companies can proactively utilize derivative and forward products to effectively manage and hedge against exchange rate risks. Medium-sized enterprises can thoughtfully consider issuing corporate bonds as a viable alternative to stabilize cash flows.
Credit assessment is undergoing a paradigm shift. Banks place far greater emphasis on actual cash flows and viable capital utilization plans rather than relying exclusively on collateral. When enterprises maintain impeccable transparency, banks undoubtedly possess a stronger foundational basis to custom-design highly suitable capital solutions.
ACB CEO Tu Tien Phat
