The State Bank of Vietnam (SBV) is drafting a Circular that will specify the conditions, dossiers, and procedures for requesting credit exceeding current limits for large, important projects within the capital city. According to the draft, the maximum credit extended to a single customer must not exceed 38% of a commercial bank's equity. For a customer and their related parties, this maximum limit is set at 52%.

Equity, in this context, is defined as the actual value of a credit institution's charter capital or the allocated capital of a foreign bank branch. This includes certain reserve funds and other liabilities, minus any required deductions.

To be eligible for credit exceeding the standard limits, customers and their projects must meet the conditions outlined in the Prime Minister's Decision 09/2024. Additionally, the projects must be included in the list of large, important projects in Hanoi that have been approved under Resolution 258, which pilots special mechanisms for the implementation of important projects in the capital.

Following the draft's provisions, once a dossier is deemed valid, the State Bank of Vietnam will solicit feedback from relevant ministries, sectors, and localities. This feedback will cover the economic, technical, and legal aspects of the project, the proposed plan, and the customer requesting the expanded credit. The entities providing feedback will have 5 working days to respond.

Based on the feedback received, the State Bank of Vietnam may request further clarification from the bank and the customer on any related issues. Within 17 working days of receiving the opinions from ministries, sectors, and localities, or the additional explanations, the regulatory body will review the dossier.

Should the conditions not be met, the State Bank of Vietnam will issue a written notification, clearly stating the unmet requirements. If the dossier fulfills all requirements, the Governor of the State Bank will then decide on the approval of credit exceeding the standard limits.

Transactions at a commercial bank. *Photo: Giang Huy*

The proposed ceiling for these large projects is higher than for regular borrowers. Under current regulations, from early this year until before 2027, a bank may extend credit up to 13% of its equity to a single customer, and 21% when including related parties. This ratio is scheduled to decrease further, reaching 10% and 15% respectively, starting from 2029.

According to the State Bank of Vietnam, the Prime Minister has previously authorized banks to provide credit beyond standard limits for several national key projects. These include the Son La Hydropower Plant, Lai Chau Hydropower Plant, and Vinh Tan 4 Thermal Power Plant.

Hanoi has implemented and is preparing to implement numerous projects under Resolution 258/2025. During a meeting early last month, the Hanoi People's Council extended procedures for 6 large projects with an estimated total capital of nearly 2 quadrillion VND. These projects include the Red River landscape boulevard axis, the Hanoi International Sports Urban Area, three urban areas, and one medical complex.

Among these, the Red River landscape boulevard axis project spans over 11,400 hectares and has a total capital of nearly 737 trillion VND, with completion anticipated in 2038. Construction for this project began on 19/12/2025, starting with a public park in Phu Thuong Ward.

The Hanoi International Sports Urban Area covers nearly 9,000 hectares, comprising four sub-zones, with a total capital of approximately 925 trillion VND. This project also began on the same day, with the commencement of a 2,1-hectare parking lot within sub-zone B. By early August, land clearance had achieved about 50% of the work, and approximately 50 trillion VND had been disbursed for compensation.

Currently, some state-owned banks possess equity exceeding 200 trillion VND. With the new mechanism, a single customer could potentially access a loan of about 87 trillion VND. The State Bank of Vietnam states that applying the proposed ceiling, combined with syndicated loans among banks, will adequately meet the credit demand for these significant projects.

Quynh Trang