Vietnam Eases Credit Caps, Unlocking Billions for Vingroup, Sun Group Projects

HANOI – Vietnam’s central bank has announced a series of policy adjustments designed to significantly expand commercial banks' lending capacity, potentially channelling billions of dollars into major infrastructure and real estate developments. The State Bank of Vietnam (SBV) has created a special mechanism for 18 projects led by prominent developers Vingroup, Sun Group, and Masterise, allowing loans for these ventures to be excluded from banks' annual credit growth ceilings.

Targeted Support for National Projects

In a directive issued on June 22, Official Dispatch No.5386/NHNN-TD, the SBV outlined specific guidance for financing several key projects. The central bank confirmed it had received requests from three companies – Vingroup, Masterise Aviation Infrastructure, and Sun Group – seeking permission to exclude credit balances associated with certain projects from the annual regulatory credit growth calculations.

The projects proposed for this special treatment are considered nationally strategic, including those serving the APEC Summit, various public-private partnership projects, and high-speed railway developments like the Ben Thanh-Can Gio and Hanoi-Quang Ninh routes. Projects associated with Gia Binh International Airport are also on the list.

The total capital requirement for these ventures is estimated at $28 billion, with most of the funding demand concentrated in the 2026-2028 period. The regulator highlighted that these are strategic national projects with significant spillover effects, regional connectivity benefits, and strong government support due to their importance in reaching socioeconomic development goals. To facilitate proactive appraisal and financing by commercial banks, the SBV has issued this specific guidance.

Under the new framework, commercial banks providing financing can exclude newly generated credit balances and annual loan disbursements related to these projects when calculating their annual credit growth limits. However, the SBV has stipulated strict oversight. Participating banks must separately monitor project-related lending and report it to the central bank. This is to ensure that the total credit exposure to project developers, contractors, and suppliers involved in implementation does not exceed overall borrowing requirements at any given time.

These banks are also responsible for requiring the three developers to closely manage the credit demand for each venture and to provide commitments that the loans will be used exclusively for project execution. Given the exceptionally large financing requirements, the SBV has encouraged commercial banks to arrange syndicated loans. If a single bank's lending amount exceeds regulatory limits for a single customer or a related customer group, the bank must report the case to the SBV, which will then submit it to the Prime Minister for consideration and approval. Credit institutions are required to separately track all outstanding balances and submit periodic reports.

System-Wide Lending Capacity Boosted

The targeted project financing is part of a broader easing of credit conditions that has effectively unlocked billions in lending capacity. Also on June 22, the SBV issued Circular No.25/2026/TT-NHNN, which raises the maximum proportion of short-term funding sources that can be used for medium- and long-term lending. Effective July 1, this ceiling will increase to 40 per cent from the current 30 per cent.

As short-term deposits currently account for 80-90 per cent of the banking system's total funding—equivalent to about $520-$600 billion—this adjustment is estimated to create an additional $52-$60 billion in capacity for medium- and long-term lending.

These measures follow other recent moves by the central bank. In May, the SBV issued a directive allowing 25 credit institutions to exclude additional lending for social housing, industrial parks, and export processing zones from their real estate credit growth limits. It also approved Circular No.08/2026/TT-NHNN, which permits banks to exclude only 80 per cent of State Treasury term deposits from funding sources when calculating the loan-to-deposit ratio, a change from the previous requirement to exclude 100 per cent.

Analysts Weigh Growth Push Against Rising Risks

Market experts believe the recent easing of credit growth restrictions shows the SBV is making substantial efforts to support economic growth, though the measures could also increase financial risks.

“With the current objective of achieving double-digit economic growth, existing ‘barriers’ would prevent the banking sector from supplying sufficient resources to support expansion,” said one senior economist. “Loosening risk management requirements can have positive effects by supporting growth, but it also increases the possibility of more severe systemic risks, particularly as the gap between lending and deposit mobilisation continues to widen.”