The State Bank of Vietnam (SBV) has played a crucial role in supporting the innovation startup ecosystem through institutional reforms, policy development, and preferential credit mechanisms. These efforts aim to enhance financial accessibility and develop a secure and enabling environment for startups and fintech innovations.
Developing Regulatory Frameworks for Fintech and Innovation
Under Decision No. 1615/QĐ-BĐH844 dated June 12, 2019, issued by the Executive Committee of the National Program 844 (MOST), SBV was tasked with leading the development of a regulatory sandbox for fintech activities in the banking sector. In response:
- SBV coordinated with relevant ministries and organizations to draft a Decree on a Controlled Testing Mechanism for Fintech in Banking.
- The proposed sandbox aims to test innovative financial technologies under close supervision, thereby fostering innovation while ensuring risk management and regulatory compliance.
Creating a Supportive Banking Environment for Startups
Startups are treated equally with other enterprises in terms of access to credit, based on the general lending framework outlined in Circular No. 39/2016/TT-NHNN, amended by Circular No. 06/2023/TT-NHNN. Additional supportive measures include:
- Short-term loans with preferential interest rates (currently at 4%/year) in Vietnamese Dong for startups classified as SMEs with transparent and sound financial performance.
- Preferential credit policies by sector (agriculture, rural development, supporting industries), applicable to SMEs and innovative startups as defined in:
- Decree No. 55/2015/NĐ-CP and Decree No. 116/2018/NĐ-CP (agriculture and rural areas)
- Decree No. 111/2015/NĐ-CP (supporting industries)
- Circular No. 02/2023/TT-NHNN allows debt restructuring and maintenance of debt classification for customers affected by economic hardship, effective until June 30, 2024.
Facilitating Access to Government Financial Support Mechanisms
- SME Development Fund
- Established by the Prime Minister with a charter capital of VND 2,000 billion, this non-profit fund provides indirect loans via commercial banks to SMEs, including startups.
- Participating banks appraise and assume risk responsibilities. The fund also accepts contributions from domestic and international sources.
- Local Credit Guarantee Funds for SMEs
- These funds provide credit guarantees for SMEs unable to meet loan requirements, covering up to 100% of loan value.
- Eligible beneficiaries include innovative startups and SMEs in priority sectors or strategic socio-economic fields.
Credit Support via the Vietnam Bank for Social Policies (VBSP)
VBSP has implemented multiple preferential credit programs targeting youth-led startups, cooperatives, and household businesses in underserved areas, including:
- Loans for vocational training, job creation, computer purchases, and overseas labor export.
- Support for education, housing, and business in remote and ethnic minority areas under Decree No. 28/2022/NĐ-CP.
- Interest subsidies (e.g., 2% subsidy on loans exceeding 6% interest rate) to ease financial burdens during early-stage development.
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