In alignment with Resolution No. 68-NQ/TW issued by the Politburo on May 4, 2025, concerning private economic development, the National Assembly has adopted several targeted support policies for private institutions. On May 17, 2025, during its ninth session, the 15th National Assembly passed Resolution No. 198/2025/QH15, outlining specific mechanisms and policies for private sector growth. Under these provisions, the state offers a 2% interest subsidy to private enterprises, household businesses, and sole proprietorships when borrowing capital for green and circular economy projects, incorporating environmental, social, and governance (ESG) standards. This initiative aims to remove major obstacles faced by private sector entities, particularly small enterprises, household businesses, and sole proprietorships, which often struggle with limited resources and difficulties in securing capital, especially for high-cost, long-term investments.
Currently, the average lending interest rate for new transactions at commercial banks has decreased by 0.08% annually compared to the end of 2024, easing capital pressure on private businesses for production and operations. For five priority sectors—export, agriculture, advanced technology, small and medium enterprises (SMEs), and supporting industries—lending rates have stabilized at 4% annually.
Since the beginning of 2025, the Bank for Agriculture and Rural Development (Agribank) has implemented nine preferential credit programs, focusing on key areas such as import-export, production, trading, and SMEs. At the same time, it continues to expand consumer loans and support individual household businesses, which play a crucial role in private sector development. The outstanding loan balance of Agribank Bac Ninh and Agribank Bac Ninh II alone has reached nearly 40,000 billion VND, with 70% of the capital allocated to agricultural, rural, and farmer-related sectors, where the primary customer base consists of private economic households. These figures clearly reflect Agribank’s consistent direction and strong commitment to prioritizing capital sources for the private economic sector.
In addition to Agribank, other commercial banks in the province—including the Bank for Investment and Development, the Bank for Foreign Trade, the Industrial and Commercial Bank, the Military Bank, and the Asia Commercial Bank—are also rolling out various preferential loan packages to support private enterprises, household businesses, and SMEs in expanding production and commercial activities.
In the context of economic integration and development, the private sector has reinforced its role as a key driver of growth and job creation, contributing significantly to the state budget. Currently, it serves as a fundamental pillar, contributing approximately 50% of GDP, providing over 80% of employment opportunities, and playing a major role in export volumes and the development of emerging industries, particularly in technology, services, and innovation. However, this sector still faces numerous challenges in accessing the necessary investment capital for production and business operations.
According to experts, to improve access to credit capital, private and SMEs must first enhance financial transparency, particularly in accounting, while also strengthening their management capabilities. This is a prerequisite for banks to accurately assess company performance and reliability, thereby being willing to accompany them and provide suitable capital sources.
Ms. Nguyen Huynh Trang, Director of HT Production and Trading Limited Company (Ky Phu Industrial Cluster), stated: “To enable private enterprises to access credit capital, banks should design specialized financial products, such as unsecured loans based on business cash flow, production contract-based loans, or asset-backed loans derived from loan capital. Additionally, it is essential to expand credit evaluation models based on actual transaction data of enterprises rather than focusing solely on secured assets.”
To enhance capital absorption capacity, especially for preferential capital targeting the private sector, the state requires an effective credit guarantee mechanism and funds to support startup investments. Furthermore, banks need tailored credit products, revised evaluation methods, and a focus on business plans rather than collateral assets. Enterprises themselves must also improve their management capabilities, financial transparency, and systematic investment planning. For SMEs, the State Bank classifies them as a priority, offering short-term VND loans at rates below the normal production and business sector average (currently 4% annually).
To support private economic growth, credit institutions in the province are committed to directing credit capital toward production and business sectors. This banking support will provide inclusive opportunities and resources to boost the private economy, thereby reinforcing local economic growth.
— News Original —
Title: Bac Ninh: Capital Provision for the Private Economic Sector
Content: In accordance with Resolution No. 68-NQ/TW issued by the Politburo on May 4, 2025, regarding private economic development, the National Assembly has approved several specific support policies for private institutions. On May 17, 2025, during its ninth session, the 15th National Assembly passed Resolution No. 198/2025/QH15, which outlines a number of mechanisms and policies for private economic development. Accordingly, the state supports institutions in the private economic sector, household businesses, and sole proprietorships with an interest rate of 2% when borrowing capital to implement green and circular projects, applying a framework of environmental, social, and governance standards. This is an important content for removing the main obstacles facing institutions in the private economic sector, including small enterprise groups, household businesses, and sole proprietorships, which suffer from limited resources and face difficulties in borrowing capital, especially capital for investment in high-cost and long-term fields.
Currently, the average lending interest rate for new transactions at commercial banks has decreased by 0.08% annually compared to the end of 2024, creating conditions for private enterprises to ease capital pressure on production and business. For five priority sectors (export, agriculture, advanced technology, SMEs, and supporting industries), lending rates have stabilized at 4% annually.
Since the beginning of 2025, the Bank for Agriculture and Rural Development (Agribank) has implemented nine preferential credit programs, focusing on key areas such as import-export, production, trading, and SMEs. At the same time, it continues to expand consumer loans and support individual household businesses, which are a significant force in private economic development. The total outstanding loans of Agribank Bac Ninh and Agribank Bac Ninh II alone have reached nearly 40,000 billion VND, with 70% of the capital allocated to agricultural, rural, and farmer-related sectors, where the main customer group consists of private economic households. These figures clearly illustrate Agribank’s firm direction and strong commitment to prioritizing capital sources for the private economic sector.
In addition to the Agricultural Bank, other commercial banks in the province, such as the Bank for Investment and Development, the Bank for Foreign Trade, the Industrial and Commercial Bank, the Military Bank, and the Asia Commercial Bank, are also implementing many preferential loan packages to support private enterprises, household businesses, and SMEs in expanding production and business activities.
Improving Capital Absorption Capacity
In the context of economic integration and development, the private sector has strengthened its role as one of the most important growth drivers and job creators, contributing significantly to the state budget. Currently, the private sector has become a fundamental pillar, contributing approximately 50% of GDP, providing more than 80% of employment opportunities, and making a significant contribution to export volumes, as well as developing new industries, especially in the fields of technology, services, and innovation. However, this sector still faces many obstacles in accessing the necessary investment capital for production and business.
According to experts, to improve access to credit capital, private and SMEs must first improve financial transparency, particularly in accounting, while also enhancing their management capabilities. This is a basic condition for banks to accurately assess company performance and reliability, and thus be prepared to accompany them and provide suitable capital sources.
Ms. Nguyen Huynh Trang, Director of HT Production and Trading Limited Company (Ky Phu Industrial Cluster), said: “To enable private enterprises to access credit capital, banks should design specialized financial products, such as unsecured loans based on business cash flow, or loans based on production contracts, or loans based on assets generated from loan capital. In addition, it is necessary to expand the credit evaluation model based on actual transaction data of enterprises rather than focusing only on secured assets.”
To increase capital absorption capacity, especially preferential capital for the private economic sector, the state needs an effective credit guarantee mechanism and funds to support startup investments. In addition, banks need specific credit products, a change in evaluation methods, and a focus on business plans rather than collateral assets. Enterprises themselves need to improve their management capabilities, financial transparency, and systematic investment planning. For SMEs, the State Bank classifies them as a priority, offering short-term VND loans below the normal production and business sector rate (currently 4% annually).
To support the development of the private economy, credit institutions in the province are committed to directing credit capital to the production and business sector. Banking support will provide inclusive opportunities and resources to promote the private economy, thereby strengthening local economic growth.
Source: https://baobacninhtv.vn/bac-ninh-tiep-von-cho-khu-vuc-kinh-te-tu-nhan-postid422278.bbg