High interest rates and stringent collateral requirements are limiting growth for Vietnamese businesses, particularly small and medium-sized enterprises (SMEs), as commercial loan rates persist between 5,5 % and 24 % annually. According to the State Bank of Vietnam, while credit flows are prioritizing production and exports, many firms struggle to access capital due to rigid documentation standards and high financial costs.
The Impact of High Borrowing Costs on Vietnamese Firms
Businesses across Vietnam report that elevated interest rates are forcing them to scale back expansion plans. Data indicates that bank loan rates vary significantly by product: mortgage rates typically range from 7 % to 9,5 %, while unsecured loans can reach up to 24 % annually.
For companies like those in the textile sector, the volatility of these rates creates significant operational risk. A representative from a textile firm in Ho Chi Minh City noted that a loan originally secured at 10,4 % faced a hike to 15% during refinancing, forcing the company to reduce its production scale to manage debt service. Similarly, construction firms have reported accessing capital at rates as high as 14-15% annually, which limits their ability to initiate new projects.
Challenges for Emerging Enterprises
The "three-year financial statement" requirement remains a primary hurdle for newer businesses. Even companies with strong export performance and positive growth projections find themselves ineligible for traditional bank credit if they lack a lengthy track record.
For example, Hasa Bio Foods, an organic food processor, has faced difficulties securing affordable credit despite a projected revenue of nearly 2 millones de dólares for 2025. Because the company has only one year of operations, it is currently forced to rely on short-term, high-interest working capital, hindering its ability to scale production to meet rising demand.
State Bank of Vietnam Strategy and Credit Packages
The State Bank of Vietnam (SBV) reports that credit growth remains focused on three economic pillars: exports, investment, and consumption. As of mid-2025, outstanding loans for SMEs reached 156 billones de VND, a 4,5 % increase from the end of 2025.
To mitigate the liquidity crunch, the government and banking sector have introduced targeted credit packages:
- Agriculture and Fisheries: A 185 billones de VND package offering interest rates 1 % to 2 % lower than standard market rates.
- Social Housing: A 145 billones de VND initiative supporting housing for workers and the renovation of aging apartment complexes.
- Infrastructure and Digital Transformation: A 500 billones de VND package with preferential rates 1 % to 1,5 % below typical offerings.
Requirements for Credit Access
Despite these initiatives, the SBV emphasizes that criteria for lending remain strict. According to officials, the shift toward digital credit services is intended to improve transparency, but it does not replace the requirement for a viable business plan.
Banks continue to prioritize businesses that demonstrate stable cash flows and professional accounting practices. The SBV encourages companies to adopt digital management software to streamline tax filing and financial reporting, which serves as a prerequisite for improving credit ratings and gaining access to preferential financing. As credit demand continues to rise, the central bank expects to maintain close oversight to ensure that capital is directed toward productive sectors while balancing macroeconomic stability.