Vietnam preparing US$8.4 billion lending package for SMEs, priority projects to boost growth

[HANOI] Vietnam’s central bank said that it is preparing a 220 trillion dong (US$8.4 billion) soft-loan package for small and medium-sized enterprises and priority projects as part of efforts to boost lending and support economic growth.

State Bank of Vietnam (SBV) deputy governor Pham Thanh Ha revealed the plan at a government meeting on Monday (Aug 3), the central bank said in a statement, adding that it had worked on the package with state commercial banks.

Vietnam is targeting economic growth of more than 10 per cent this year, and Ha said that the 8.18 per cent growth recorded in the first half of 2026 was below expectations.

Ha noted that the central bank has kept key policy rates unchanged this year to ensure banks have access to low-cost funding, and urged lenders to cut costs, streamline procedures and lower borrowing rates to support businesses and households.

The SBV has set a credit growth target of about 16 per cent for this year, with flexibility to adjust it in line with economic conditions. Outstanding loans in the banking system rose by 8.38 per cent over the first seven months of the year, he added, equivalent to annual growth of about 16.5 per cent.

The central bank will continue to closely monitor inflation risks and safeguard the stability of the banking system, Ha pointed out, adding: “The global economic outlook is expected to remain highly uncertain and volatile, posing challenges for the management of monetary policy in emerging and developing economies with high levels of trade openness such as Vietnam.” REUTERS