Vietnam’s central bank urges credit firms to reduce loan fees, simplify process

Credit institutions are asked to review fees with view of possible exemptions.

Vietnam’s central bank is encouraging credit institutions and foreign bank branches (CIs) to implement solutions that will improve lending processes for enterprises.

The State Bank of Vietnam (SBV) has issued Document No. 9364/NHNN-TD, which requests CIs to implement solutions that support enterprises to “overcome difficulties and promote their production and business activities” in 2024 and the following years.

CIs are asked to reduce costs, and to review their fees with a view of considering possible exemptions and reduction of all unnecessary fees.

The central bank also requested that CIs publicize the fees applied by the credit institutions to the provision of their products and services.

CIs are also asked to simplify their lending procedures; and to enhance the application of information technology in the lending processes to reduce the common lending interest rates.

These are expected to support enterprises and the people to develop their production and business activities, and to promote economic growth, the SBV said in a press release posted on its website.

CIs are also tasked with promoting the implementation of public credit programs and policies. These include the promotion of credit packages for the social housing loans, housing for workers, and the reconstruction projects of old apartment buildings.

Other credit programs include a VND 60 trillion-worth program for the forestry and fishery sectors; and the credit program for the production, processing and consumption linkages of high-quality and low-emission rice products in the Mekong Delta.

SBV also reminded CIs to implement solutions that will help the people and businesses affected by Typhoon Yagi to recover.