The 2% interest rate support package was designed to provide assistance to businesses that are able to recover and repay debt, rather than all struggling units. This was stated by Governor Nguyen Thi Hong during an explanation to the National Assembly regarding the implementation of the policy as part of the socio-economic recovery package.
However, concerns were raised by many National Assembly delegates about the low disbursement rate, especially since businesses were facing difficulties in accessing capital post-Covid-19. According to the Government’s report, only 3.05% of the 2% interest rate support policy’s funds had been disbursed through the commercial banking system by the end of 2023, totaling 1,218 billion VND. The remaining capital that had not been disbursed amounted to approximately 38,800 billion VND.
The biggest obstacles for businesses accessing this support policy were identified as loan procedures and conditions. A survey conducted by the Vietnam Confederation of Commerce and Industry (VCCI) revealed that only 29.5% of businesses were aware of the policy, and just 2.5% of units had received loans. Mr. Tran Quoc Tuan, head of the Propaganda Department in Tra Vinh province, highlighted this issue during a speech at a conference on business development in his province.
Governor Nguyen Thi Hong explained that while businesses make decisions about borrowing capital based on various factors beyond just receiving interest rate support, it is important for banks to adhere to prescribed conditions and procedures to ensure debt repayment capabilities. She emphasized that banks must also be transparent in their lending practices and communicate clearly with borrowers about loan terms and conditions.
Given these challenges in utilizing the remaining support package, there have been discussions about potentially implementing further policies or reforms aimed at improving accessibility for businesses seeking assistance with borrowing capital post-Covid-19. Governor Nguyen Thi Hong presented a proposal to cancel the estimate for additional funds from this program, not mobilize resources from other sources, and discontinue implementation altogether due to its low effectiveness in supporting struggling units during this time.
Discussions regarding the future of support policies are expected to take place in
