12 Vietnamese Banks Commit 408,000B VND to SME Credit at Lower Rates

Overview

Twelve Vietnamese banks, including the Big4 state-owned lenders and eight private institutions, have committed over 408,000 billion VND (approximately USD 16.3 billion) in credit for small and medium enterprises (SMEs) at interest rates at least 1% lower than average. The program, announced by the State Bank of Vietnam (SBV), aims to improve SME access to finance, which remains critically low at 8.8%. The affected tickers include BID, VCB, CTG, SHB, MSB, STB, and TPB.

Key Facts

• Total committed credit: 408,000 billion VND (approx. USD 16.3 billion).
• Big4 banks (Agribank, BIDV, Vietcombank, VietinBank) commit 220,000 billion VND; Agribank 70,000 billion, others 50,000 billion each.
• Eight private banks (SHB, MSB, Sacombank, BVBank, Nam A Bank, NCB, Saigonbank, TPBank) commit 188,000 billion VND.
• Interest rate reductions range from 0.5% to 2% depending on sector.
• SME credit access rate is 8.8% as of end-July, versus over 47% for large enterprises (FiinGroup data).
• Prime Minister Lê Minh Hưng directed the banking sector to enhance SME credit access in mid-August.
• Program registration updated by SBV as of 24 August.

What Happened

The State Bank of Vietnam (SBV) announced on 24 August that 12 banks have registered to participate in a credit program targeting SMEs, with a total scale of 408,000 billion VND. The program was initiated after Prime Minister Lê Minh Hưng called for improved capital access for SMEs during a working session with the central bank in mid-August. Participating banks commit to offering loans at interest rates at least 1% lower than the average for the same tenor, along with fee waivers where applicable.

The Big4 state-owned banks—Agribank, BIDV, Vietcombank, and VietinBank—account for 220,000 billion VND of the total, with Agribank committing 70,000 billion and the other three 50,000 billion each. Eight private banks, including SHB, MSB, Sacombank, BVBank, Nam A Bank, NCB, Saigonbank, and TPBank, have registered a combined 188,000 billion VND, with rate cuts ranging from 0.5% to 2% depending on the sector.

Market Context

The program comes amid a persistent gap in SME credit access. According to FiinGroup, only 8.8% of SMEs had access to bank loans as of end-July, compared with over 47% for large enterprises. This disparity has been a long-standing issue, with banks tending to favor established clients—nearly 85% of small-business borrowers have been operating for over five years. The affected tickers are listed on HOSE (BID, VCB, CTG, SHB, MSB, STB, TPB). Recent price action shows BID at 36,900 VND, CTG at 31,850 VND, SHB at 12,050 VND, and VCB at 60,300 VND as of 26 August 2026.

Strategic Significance

For long-term investors, this program signals a policy push to broaden the banking sector’s lending base beyond large corporates. By committing to lower rates and fee reductions, banks may see increased loan volumes but potentially thinner margins. The success of the program will depend on how effectively banks can manage credit risk in the SME segment, which is often perceived as higher risk. The initiative aligns with broader government efforts to support private enterprise and could enhance the long-term growth prospects of banks that execute well, particularly those with strong SME-focused strategies like BIDV and TPBank.

What to Watch

• Disbursement progress: Track actual loan disbursements under the program in Q3 and Q4 2026.
• Interest rate trends: Monitor whether the SBV maintains pressure on lending rates and how it affects bank net interest margins.
• SME credit quality: Watch for any uptick in non-performing loans (NPLs) in the SME segment as lending expands.
• Regulatory follow-up: Look for SBV guidance on non-collateral-based credit assessment, as proposed by VCCI.
• Bank earnings reports: Q3 2026 earnings will reveal the initial impact on loan growth and profitability for participating banks.