State investment loan interest rate in Vietnam

State investment loan interest rate in Vietnam 

State investment loan interest rate shall be decided by the Vietnam Development Bank, ensuring compliance with the principle of capital cost coverage, operation expenses, and risk provisions in loans with concluded credit contracts from December 22, 2023, and shall not be lower than 85% of the average loan interest rate of domestic commercial banks in the same period; the state budget shall not provide subsidy on interest rate difference and support for the management cost of such loans. 

Procedure for deciding state investment loan interest rate 

- Before January 15 every year, the State Bank of Vietnam shall send a document to the Ministry of Finance of Vietnam providing the data on the average loan interest rate of domestic commercial banks in a same period for submission to the Vietnam Development Bank;

- Within 3 working days after receiving the document of the State Bank of Vietnam as prescribed in Point a Clause 2 Article 9 of Decree No. 32/2017/ND-CP, the Ministry of Finance of Vietnam shall send a document to the Vietnam Development Bank with the average loan interest rate of domestic commercial banks in a same period provided by the State Bank of Vietnam; 

- Within 3 working days after receiving the document of the Ministry of Finance of Vietnam as prescribed in Point b Clause 2 Article 9 of Decree No. 32/2017/ND-CP, the Vietnam Development Bank shall, based on the principle of determining the state investment loan interest rate prescribed in Clause 1 Article 9 of Decree No. 32/2017/ND-CP, decide the state investment loan interest rate;

- If the loan interest rate of domestic commercial banks has a major fluctuation, the Vietnam Development Bank shall report to the Ministry of Finance of Vietnam for the transfer of a document requesting the provision of the average loan interest rate of domestic commercial banks at the period corresponding to the transfer to the State Bank of Vietnam for the Vietnam Development Bank to decide the state investment loan interest rate.

See more details in Decree No. 78/2023/ND-CP, effective as of December 22, 2023.