Vietnam Banks Commit VND230 Trillion for Southeast Projects as Lending Barriers Persist

Big financing pledges meet a slow release of funds

Vietnamese banks have committed to arrange about VND230 trillion for businesses and projects linked to the southeast region, bringing together financing plans for housing, medicines, factories, transport and major urban developments. The State Bank of Vietnam put the total at 18 cooperation agreements following a conference in Ho Chi Minh City on October 23, 2026, compared with an initial tally of 20.

The money is being lined up against a much larger investment need. Fifteen priority projects in the region require approximately VND757 trillion in loans, yet only two had received disbursements by the end of September. Disbursement means money has actually been released to the borrower, allowing it to pay contractors, suppliers or other expenses.

The government's conference account identifies October 23 as the meeting date, although October 22 was also reported. The State Bank announced the VND230 trillion total on the evening of October 24.

The central bank and the Ho Chi Minh City People's Committee organised the meeting to support regional growth during 2026 to 2030. State Bank Governor Pham Duc An, city chairman Nguyen Van Duoc and central bank deputy governor Nguyen Ngoc Canh jointly chaired it.

The agreements bring banks and businesses closer to financing some substantial investments. Turning those commitments into construction, production and public services will depend on completing project paperwork, resolving land issues and agreeing on workable repayment plans. The October agreements came as businesses were also asking for cheaper loans and more flexible assessments of their ability to repay.

How large is the region's financing need?

The southeast contributed about 31.4% of Vietnam's economic growth during the first nine months of 2026, according to the government account. Its localities were assigned annual growth targets of 10% to 10.04% for gross regional domestic product, the value of goods and services produced within a region.

Nguyen Xuan Bac, the official overseeing the State Bank's Credit Department, told the conference that outstanding loans nationwide exceeded VND20.7 quadrillion at the end of September, up 11.7% from the end of 2025. Southeast regional lending was nearly VND6.8 quadrillion, an increase of 10.93%. A quadrillion is 1,000 trillion.

Those amounts put regional lending at approximately 33% of the national total, using 6.8 divided by 20.7. Conference statements also described the share as nearly 35%. The region's lending growth was 0.77 percentage points below the national rate, despite its substantial investment requirements.

The State Bank has introduced adjustments to bank credit growth limits for institutions financing 35 major projects nationwide. Their combined borrowing need is about VND1.7 quadrillion. The southeast's 15 projects account for around 44.5% of that demand, calculated from VND757 trillion divided by VND1,700 trillion.

The VND230 trillion announced at the conference is equivalent in size to about 30% of the VND757 trillion requirement. The agreements cover a broader collection of businesses and investments, while the VND757 trillion figure applies specifically to the 15 priority projects.

Where the largest agreements are concentrated

BIDV and VietinBank agreed to jointly finance PTSC Marine Mechanical Services Co., Ltd. for the EPIC 1 contract package of the Maydan Mahzam field redevelopment project. The agreement has a stated value of US$2.8 billion, making it one of the largest individual arrangements presented at the meeting.

HDBank and Vikki Bank committed VND50 trillion for the VIFC-HCMC iconic project cluster being developed by a consortium of REE, HFIC, Sovico and VinaCapital Holdings. That single commitment equals approximately 21.7% of the VND230 trillion conference total.

HDBank and Vikki Bank also signed three contracts worth a combined VND74.5 trillion with Vina Dai Phuoc and Dai Phuoc Dong Nai. These cover infrastructure and a smart city, a financial centre with 60 floors, and a knowledge city development in Dong Nai. Their Ho Chi Minh City arrangements also include Sovico's projects for metro lines 4 and 5.

HDBank and Vikki Bank presented five agreements between them, while Vietcombank presented four. VietinBank, BIDV, Agribank, MB and NCB each participated in two, including joint financing arrangements, and ACB presented one. Several agreements involve more than one bank.

HDBank deputy chief executive Tran Hoai Nam said the bank had 53 transaction locations in the southeast, serving more than 1.17 million customers, including nearly 14,700 businesses. He called for lending growth to match banks' available funding and concentrate on production, trade and supply chains.

Road financing comes with conditions

Agribank's VND4.867 trillion arrangement concerns the section of Ho Chi Minh City Ring Road 4 running from the Saigon River to Thay Cai Canal. The borrower is DATP 2-3 Company Limited, and the works include Phu Thuan Bridge across the river and Thay Cai Bridge across the canal.

The agreement gives priority to studying and considering credit for the project over the medium and long term. Its wording leaves further lending assessment ahead. The road section is being developed through a public and private partnership under a build, operate and transfer contract, commonly called BOT.

Under that model, a private project company builds and operates infrastructure for an agreed period before transferring it to the public authority. The financing plan must support both construction costs and repayment over the operating period.

Agribank's Can Gio branch is involved in the road arrangement, alongside proposed account management, electronic payment, cash management and insurance services. These services help a project company organise incoming funding and payments to contractors throughout construction.

The State Bank's wider priorities include urban railways, high speed rail, Ho Chi Minh City Ring Roads 3 and 4, and Can Gio Bridge. Governor An said large infrastructure projects need funding from channels beyond bank lending, bringing public investment, private investors and capital markets into the financing plan.

Housing, medicines and industrial production

Vietcombank agreed to provide VND1.113 trillion for Becamex to develop the Viet Sing Zone 2 and Viet Sing Zone 7 social housing projects. The two projects bring housing into a package otherwise dominated by large infrastructure, industrial and urban investments.

ACB's VND500 billion agreement supports pharmaceutical production and business activities at Central Pharmaceutical Materials Joint Stock Company No. 2. MB also has a VND6.05 trillion financing arrangement for Future Textile Vietnam's fabric manufacturing plant.

Agribank's Bac Long An branch signed a cooperation agreement with Tran Anh Group for the Duc Hoa III - Muoi Day Industrial Park. The development covers about 114.35 hectares and has total planned investment of VND2.5 trillion.

The industrial park agreement covers arranging credit for both the developer and businesses that subsequently lease infrastructure there. The VND2.5 trillion figure is the project's investment cost; the lending arrangement will address the funding needs of its different participants.

These agreements reach several stages of economic activity: preparing industrial land, building factories, financing production and supplying homes. Agribank's industrial park cooperation also includes digital payments, insurance and financial services for participating businesses and employees.

Two major projects reshape the city's public spaces

NCB signed a strategic cooperation agreement with Ben Nha Rong Tourism Services Company Limited to arrange financing for the Ben Nha Rong - Khanh Hoi Cultural Park and public green space at Ben Bach Dang. Preliminary investment is approximately VND29.317 trillion across about 73.3 hectares of land and water.

The development is intended to create connected cultural, historical and public spaces along the Saigon River. NCB's proposed services extend to the developer and contractors, including guarantees, trade finance, payments and cash management.

NCB, VietinBank and Mat Troi Vung Tau Company Limited also signed a memorandum to coordinate funding for the Rach Chiec National Sports Complex. Planned for Binh Trung ward, the complex covers more than 186 hectares and has total investment exceeding VND145.6 trillion.

The sports complex is designed for competition, training and performances, with facilities intended to accommodate approximately 90% of Olympic sports. Its stadium is also planned to host major entertainment events. Financing cooperation is to follow the projects through preparation, construction, acceptance and operation.

The two investment estimates describe the cost of the developments. The amount NCB and its partners will actually lend, and the timetable for releasing the conference commitments, have not been disclosed. NCB has separately received State Bank approval to increase its charter capital by VND33 trillion through a private share placement; completion would bring that capital to nearly VND62.28 trillion.

Smaller businesses seek a different route to credit

Le Nhu Thach, vice chairman of the Ho Chi Minh City Business Association and chairman of Bcons Group, said small and medium sized enterprises account for about 98% of businesses but receive only about 20% of bank credit. He cited annual lending rates of 10% to 12% and collateral requirements for 93.5% of loans.

Collateral is property or another asset a lender can claim if a borrower fails to repay. Companies with orders and reliable customers can still struggle to borrow when they have few suitable assets to pledge.

A representative of Ban Mai Company said production businesses often have narrow profit margins and must finance operations for six months or longer before recovering their money. The company asked banks to give greater weight to contracts, cash flow and a borrower's record when assessing loans.

Phan Dinh Canh, chairman of the Dong Nai Logistics Association, described pressure from fuel, wages, terminal charges and customs costs. Logistics companies need working capital, money that covers everyday expenses while they wait for customers to pay.

Nguyen Van Toan Co, chairman of the Ho Chi Minh City association for consulting, investment and digital enterprise development, proposed using commercial transaction data to help assess repayment ability. Sales and payment records can give banks a clearer picture of how money moves through a business.

MB chief executive Pham Nhu Anh said his bank had arranged more than VND100 trillion in regional credit demand, with direct loans outstanding of nearly VND70 trillion. Financing also reaches contractors and suppliers, connecting large projects with the smaller companies delivering materials and services.

Lower borrowing costs and more funding channels

Governor An said banks should reduce operating costs, improve management and expand digital processing to create room for lower lending rates. He called for efforts to reduce lending rates by 1.5% to 2%, focused on production and priority activities, alongside a reduction of about 0.5% in deposit rates. These were policy objectives rather than a published schedule of new customer rates.

The State Bank also plans to monitor interest rates, exchange rates and liquidity, meaning the funds banks have available to meet payments and lending needs. Nationwide deposits reached VND19.5 quadrillion at the end of September, up 10.7% from the end of 2025.

Le Nhu Thach proposed developing bond and equity markets, infrastructure investment funds, international financing and partnerships between public authorities and private investors. ACB chief executive Tu Tien Phat also discussed advising on corporate bond issuance, investing in bonds and connecting businesses with other capital sources, particularly through the international financial centre.

Governor An said Vietnam's credit relative to gross domestic product was already much higher than in countries with comparable economic size and development. His call for several financing channels addresses the need to fund lengthy infrastructure investments while maintaining a sound banking system.

Land approvals and project readiness determine the next steps

Ho Chi Minh City chairman Nguyen Van Duoc said the city would publish and update its priority project list, identifying investment scale, developers, progress, funding needs and financing structures. The city would also address investment procedures, land matters and site clearance.

The city was working through 838 stalled or troubled projects, with more than 500 additional projects submitted by businesses for attention. Duoc set a goal of resolving obstacles during 2026. The work includes compensation, land clearance and consideration of land pricing arrangements.

The main milestones show why project preparation matters alongside financing:

• End of September 2026: Regional loans reached nearly VND6.8 quadrillion, while two of the 15 priority projects had received disbursements.
• October 23, 2026: Banks and businesses presented cooperation agreements at the Ho Chi Minh City conference.
• October 24, 2026: The State Bank announced approximately VND230 trillion across 18 agreements.
• During the remainder of 2026: Ho Chi Minh City aims to address obstacles affecting its backlog of projects.
• 2026 to 2030: Banks and public authorities plan financing support for the region's development programme.

The government's conference account calls on developers to complete legal documentation, provide transparent financial information, contribute their own capital and prepare credible repayment plans. Banks are being asked to match funding to viable projects, while associations help businesses prepare applications. Those tasks connect the headline commitments to the practical work of getting projects built and businesses paid.

Key Points

• The State Bank announced about VND230 trillion across 18 cooperation agreements.
• Fifteen regional priority projects need approximately VND757 trillion in loans; two had received funds by the end of September.
• Major arrangements include US$2.8 billion for PTSC's contract package and VND50 trillion for the VIFC-HCMC project cluster.
• Other agreements cover Ring Road 4, social housing, pharmaceuticals, textile production and industrial infrastructure.
• Businesses want lower borrowing costs and lending assessments that give greater weight to contracts and cash flow.
• Project approvals, land clearance, repayment plans and several funding channels are central to implementation.