Outstanding loans for 18 projects of Vingroup, Sungroup, and Masterise excluded when calculating credit growth

Outstanding loans for the APEC projects, the high-speed railway, Gia Binh airport, and several PPP projects are excluded when calculating credit growth.

The State Bank of Vietnam has just issued a document to commercial banks regarding the consideration of extending credit to projects proposed by Vingroup, Sun Group, and Masterise Aviation Infrastructure JSC.

Accordingly, the credit that commercial banks extend to these three enterprises to implement the projects in the portfolio will be excluded when calculating the banks' annual credit growth. This rule applies to the outstanding credit balance and new loans arising during project implementation.

However, banks must still track the related outstanding loans separately and report them to the State Bank of Vietnam as required. Before extending credit, banks are responsible for requiring enterprises to strictly control total capital needs, verify the purpose of loan use, and ensure that the total outstanding balance for each project does not exceed the registered capital need.

According to the published portfolio, there are 18 projects and items with a total mobilized capital need of about VND752,140 billion. According to the plans reported by the enterprises, the mobilized capital need is expected to reach about VND210,050 billion in 2026, VND244,190 billion in 2027, and VND187,020 billion in 2028.

The APEC Conference and Exhibition Center, with a roof inspired by ocean waves. Photo: DN

Of this, the group of Sun Group projects serving the APEC Conference has a total mobilized capital need of about VND169,720 billion. The portfolio includes the APEC conference center, requiring about VND20,020 billion; the expansion of Phu Quoc International Airport, requiring about VND50,450 billion; the Bai Dat Do mixed-use urban area, requiring about VND81,120 billion; the Nui Ong Quan mixed-use eco-tourism urban area, requiring about VND15,450 billion; and section 1 of the urban tram line, requiring about VND2,680 billion.

The group of projects implemented under the public-private partnership method has a total mobilization need of about VND162,300 billion. Of this, the Rach Chiec National Sports Complex accounts for the majority, with a need of about VND116,500 billion. The two road sections connecting Gia Binh airport with Hanoi require about VND24,480 billion and VND21,320 billion, respectively.

For the projects proposed by Vingroup, the enterprise has included in the portfolio two high-speed railway lines with a total estimated investment of about VND249,800 billion, of which the mobilized capital need is about VND212,330 billion.

Specifically, the Ben Thanh–Can Gio railway line has a total investment of about VND102,430 billion, comprising VND15,360 billion of equity and more than VND87,000 billion of mobilized capital. The Hanoi–Quang Ninh railway line has a total investment of about VND147,370 billion, of which equity is about VND22,110 billion and mobilized capital is about VND125,270 billion.

For Masterise Aviation Infrastructure JSC, the group of projects at Gia Binh International Airport has a total mobilized capital need of about VND207,780 billion. The Gia Binh airport project alone requires about VND113,000 billion in mobilized capital. The remainder is for items such as the air traffic control tower, airport connecting roads, resettlement areas, infrastructure restoration works, and offset projects.

The State Bank of Vietnam assesses that the capital needed to implement these projects is very large, and encourages commercial banks to coordinate on syndicated lending to meet the financial resources for these works.

In cases where an individual bank's credit extension exceeds the lending limit for a single customer or a group of related customers, the bank must report to the State Bank of Vietnam for submission to the Prime Minister for consideration and decision as prescribed.

Excluding newly arising outstanding loans when calculating credit growth does not mean that the loans will be automatically approved. Commercial banks must still fully assess the feasibility, effectiveness of the project, and the customer's repayment capacity before deciding to extend credit, and bear responsibility for the loans they have granted.

---

Source: TheLeader — theleader.vn. This article is republished for the purpose of sharing knowledge with the community of founders and investors within the HCM VIF ecosystem.