HCMC – The Ministry of Finance (MOF) is drafting a decree to provide interest rate support of two percentage points per year for private-sector enterprises, business households, and individual entrepreneurs.
The subsidy will apply to loans taken through the State Financial Fund outside the budget for implementing green and circular economy projects.
Under the draft decree, the interest subsidy will apply from the loan disbursement date until the borrower repays the principal and/or interest as agreed with the lending fund.
To qualify, borrowers must meet several conditions. Loans must be used for projects confirmed by competent authorities as meeting green and circular economy criteria and complying with environmental, social, and governance (ESG) standards. Eligible projects will be listed on the Ministry of Agriculture and Environment’s online information portal.
Additionally, loans must not already receive interest support under other state budget policies and must have a minimum interest rate of 2% per year. The lending must be disbursed by the State Financial Fund outside the budget, with outstanding principal from the date the decree takes effect.
Loans with overdue principal, extended repayment terms, or projects removed from the green project list and ESG compliance framework will lose the interest support.
The Ministry of Finance is currently seeking public feedback on the draft decree via its online portal.
