At a government press conference on 6/12, Deputy Governor Pham Thanh Ha of the State Bank of Vietnam (SBV) announced that approximately 250,000 bank customers have been impacted by storms, floods, and inundation. The total outstanding debt for this group amounts to about 60,000 billion VND.

To support individuals and businesses, the banking sector is offering credit programs and packages with interest rates lower than standard lending rates to help them restore production and business activities, according to the Deputy Governor.

The State Bank of Vietnam also mandated an assessment and review of the business situation, difficulties, and repayment capacity of borrowers. Consequently, banks have restructured loan terms and reduced interest rates by 0,5-2% for three to six months, benefiting nearly 24,000 customers with outstanding loans totaling approximately 14,000 billion VND.

In addition, banks have launched a post-storm business recovery loan program valued at approximately 70,000 billion VND. To date, nearly 1,500 billion VND has been disbursed to about 6,500 customers across various sectors. For example, the agriculture, forestry, and fishery sector alone has received approximately 600 billion VND, benefiting 4,000 customers.

The Vietnam Bank for Social Policies (VBSP) is implementing policy credit programs for the poor and other policy beneficiaries. Following a decision by the Prime Minister, VBSP will reduce lending interest rates by 2% per year for three months (from 10-12/2025) for approximately three million affected customers across 22 provinces and cities. The projected interest support for this group of customers is over 1,100 billion VND.

For the 4 localities of Gia Lai, Dak Lak, Lam Dong, and Khanh Hoa, which were affected by typhoon No. 13, the Vietnam Bank for Social Policies is finalizing procedures to propose to the Prime Minister a further 2% reduction in lending interest rates for three months, from 10-12/2025. This package is expected to benefit nearly one million affected customers, with interest support totaling almost 300 billion VND.

Deputy Governor Pham Thanh Ha of the State Bank of Vietnam speaks at the government press conference on 6/12. _Photo: VGP_

From the perspective of the Ministry of Finance, Deputy Minister Nguyen Duc Chi stated that, in light of the severe damage caused by recent storms and floods in many localities, the government thoroughly assessed the impact on socio-economic development and GDP growth. The Prime Minister approved an allocation of over 6,800 billion VND from the 2025 central budget to provide emergency assistance to affected localities.

Regarding financial and tax policies, current laws clearly stipulate that organizations, businesses, and individuals affected by natural disasters are eligible for tax payment extensions, tax exemptions or reductions, the inclusion of damages as reasonable expenses for businesses, and consideration for deductions for individuals. The Ministry of Finance will issue specific guidelines to ensure that individuals and businesses fully benefit from these support policies.

Additionally, the Ministry of Finance has urged insurance companies to promptly compensate affected organizations and individuals as per their contracts, facilitating early financial recovery. The Ministry will continue to collaborate with other ministries, sectors, and localities to address the immediate aftermath of natural disasters and develop long-term financial solutions to enhance future resilience.

Also at the press conference, concerning monetary policy management, the Deputy Governor reported that as of 27/11, credit to the economy stood at over 18,2 million billion VND, marking a 16,56% increase compared to the end of 2024.

Looking ahead, the global economy is expected to remain complex and unpredictable, with major countries continuing to increase trade protectionism. The outlook for monetary policy management by central banks, particularly in the United States, is difficult to forecast and carries potential impacts on international markets, as well as the currencies of emerging and developing nations, posing challenges for managing interest and exchange rates.

The Deputy Governor stated that the State Bank of Vietnam will continue to closely monitor macroeconomic developments, as well as domestic and international money and financial markets. This includes tracking interest rate decisions and policy guidance from the United States Federal Reserve (Fed).

The objective is to proactively and flexibly manage monetary policy tools, coordinating closely with fiscal policy and other macroeconomic policies.

Phuong Dung