10,000 billion VND flood prevention project: HCMC proposes to exempt and reduce refinancing loan interest

The Ho Chi Minh City People's Committee proposed that the State Bank consider reducing the refinancing interest rate from 2%/year to 0%/year and temporarily suspending the collection of refinancing debt for BIDV, in order to reduce financial pressure, avoid additional costs and facilitate the contract negotiation process between the parties.

Implementing Resolution No. 212/NQ-CP dated July 21, 2025 of the Government on removing difficulties and obstacles in implementing the project to solve tidal flooding in Ho Chi Minh City area taking into account climate change factors (phase 1), on the afternoon of August 25, the Ho Chi Minh City People's Committee has just issued a document reporting to the Prime Minister and the State Bank of Vietnam .

The project is more than 90% complete and has been suspended for many years. Photo: QUOC HUNG

Accordingly, the city proposed to allow BIDV Bank to classify Group 1 debt for the project loan. This is a special project serving socio-economic tasks, part of the flood prevention planning with the goal of controlling flooding due to high tides for an area of ​​570km², with a population of 6.5 million people on the right bank of the Saigon River and the center of Ho Chi Minh City.

The classification of Group 1 debt will facilitate BIDV to continue disbursing funds for the project. The State Bank will consider reducing the refinancing interest rate from 2%/year to 0%/year and temporarily suspending the collection of refinancing debt for BIDV, in order to reduce financial pressure, avoid additional costs and facilitate the contract negotiation process between the parties.

The Ho Chi Minh City People's Committee emphasized that the approval of the above recommendations will be an important basis for continuing to implement, speeding up construction progress and completing the project soon, contributing to flood control and proactively responding to climate change for the city.

QUOC HUNG

Source: https://www.sggp.org.vn/du-an-chong-ngap-10000-ty-dong-tphcm-kien-nghi-mien-giam-lai-vay-tai-cap-von-post810102.html