The applicable entities are non-budget state financial funds with lending activities, established, organized, and operated in accordance with the law, including: the Small and Medium Enterprise Development Fund; the Vietnam Environmental Protection Fund; local Environmental Protection Funds; the Vietnam Cooperative Development Support Fund and local Cooperative Development Support Funds; the Vietnam Farmers Support Fund and local Farmers Support Funds; the Local Development Investment Fund; and other non-budget state financial funds with lending activities, as decided by competent state agencies in accordance with the law.
Additionally, the applicable entities include borrowers from these funds whose loans fully meet the conditions for interest rate support from the state budget (SBB), as well as the management agencies of non-budget state financial funds and other related organizations and individuals.
According to the draft, to be eligible for interest rate support, loans must meet specific conditions.
First, the loan must be used for implementing green, circular projects that apply the ESG framework as stipulated in the Prime Minister’s decision and are listed on the Ministry of Agriculture and Environment’s electronic information portal.
Second, the loan must not have received interest rate support from the SBB under other policies and must have a minimum interest rate of 2% per annum.
Third, the loan must be disbursed by a non-budget state financial fund and have outstanding debt arising from the effective date of this Decree.
Fourth, the borrower must use the loan for its intended purpose as stipulated.
The draft clearly states that interest rate support will not continue for loans with overdue principal balances or those that have been restructured; loans for projects no longer listed as green, circular, or ESG-compliant on the Ministry of Agriculture and Environment’s electronic information portal.
The interest rate support period for a loan is determined from the disbursement date until the borrower fully repays the principal and/or interest as agreed between the non-budget state financial fund and the borrower. The support rate is 2% per annum, calculated on the outstanding loan balance and the support period as specified.
Interest rate support for private sector enterprises, business households, and individuals borrowing through non-budget state financial funds to implement green, circular projects that apply the ESG framework.
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Regarding the support method, the SBB provides interest rate support to borrowers through non-budget state financial funds and pays the interest support amount directly to these funds as stipulated. Monthly, the non-budget state financial funds calculate the interest support amount and directly reduce it from the borrower’s interest payable.
The SBB will allocate funds for interest rate support within its authority. The central budget ensures funding for centrally managed funds, while local budgets ensure funding for locally managed funds.
The Ministry of Finance is currently seeking feedback on this draft via its electronic information portal.
– 8:36 PM, September 29, 2025
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