Banks scaling up support in aftermath of Typhoon Yagi
Banks scaling up support in aftermath of Typhoon Yagi
Banks across the country have proactively introduced flexible support schemes to assist individuals and businesses severely impacted by Typhoon Yagi.
Among the hardest-hit areas is Quang Yen town in Quang Ninh province, where Vu Van Cuong, a local fisherman, estimates that his family’s fishing cages sustained over $583,000 in damage. However, some of his neighbours have suffered losses amounting to as much as $1.3 million. Cuong’s biggest concern is now managing his bank loans amid such financial hardship.
“Our family borrowed from the bank to run our business, and now we don’t know what to do,” Cuong said. “We hope the bank will be sympathetic, extend the loan terms, and give us more time to repay so we can restart the business.”
As one of the leading institutions in agricultural and rural lending, Agribank has been at the forefront of providing support to affected customers. Doan Ngoc Luu, deputy CEO of Agribank, explained that the bank's leadership has directed Agribank Insurance JSC to promptly implement support procedures, ensuring timely compensation for customers impacted by the storm.
The bank is also reviewing the overall extent of customer losses, calculating potential overdue debts, assessing repayment capacity, and formulating specific support solutions for each affected case. Luu also highlighted that the bank is working closely with local authorities to assist with social welfare activities, contributing to the recovery efforts in communities hit by Typhoon Yagi.
“We are actively coordinating with local authorities to support residents through social welfare activities, striving to mitigate the consequences left by Typhoon Yagi,” said Luu.
Le Hoang Tung, deputy CEO of Vietcombank, disclosed that approximately 6,000 of their customers were affected by the storm, with a total outstanding debt nearing $2.95 billion. In the most affected areas, such as Haiphong and Quang Ninh, about 230 customers were directly impacted, with debts totalling $554 million.
“To help individuals and businesses recover, the bank is considering reducing interest rates by 0.5 per cent for the period from September 6 to December 31 for customers who borrowed for production and business activities in storm-hit areas,” Tung said.
This support scheme is expected to assist around 20,000 individual and corporate customers, with a total loan balance of approximately $5.4 billion. The interest rate reduction applies to both existing and new loans, providing much-needed relief to businesses and individuals striving to stabilise their operations and lives post-storm.
Meanwhile, MSB has also announced its support for customers affected by Typhoon Yagi. The bank will offer a 1 per cent reduction in lending rates for trading households, applicable for loans with terms of up to 60 months. The bank's support programme will run until December 31, and the reduced interest rates are aimed at alleviating some of the financial burdens on households trying to rebuild their livelihoods.
In addition, MSB is offering competitive credit packages for small businesses. The bank has set mortgage loan limits of up to $250,000 at interest rates starting from 4.99 per cent, and unsecured loans of up to $83,000 at rates as low as 7.7 per cent.
The loan terms for small businesses extend up to 36 months and include various loan types, such as working capital supplements, medium- and long-term loans, and trade finance, all designed to help businesses recover from the storm's damage.
Similarly, VPBank has introduced a reduction in lending rates for individual customers holding collateral-based loans affected by Typhoon Yagi. The bank is offering a 1 per cent reduction for medium- and long-term loans, and a 0.5 per cent reduction for short-term loans. This programme is set to run from September 13 to December 31, and will cover key areas impacted by the typhoon, including Quang Ninh, Haiphong, Hanoi, Thai Nguyen, and Yen Bai.
A representative from HSBC Vietnam stated that the bank is actively collaborating with customers in the affected areas to assess the extent of damage and determine necessary support measures, in line with guidance from the State Bank of Vietnam (SBV).
Economist Nguyen Tri Hieu noted that amid the growing demand for consumer loans following Typhoon Yagi, one potential solution for those seeking quick financial access is to use domestic credit cards. These allow consumers to spend now and pay later, with an interest-free period of 45 to 55 days. According to Hieu, this could provide immediate financial relief to individuals with urgent living expenses, helping them avoid resorting to predatory lenders.
SBV Deputy Governor Dao Minh Tu has called on credit institutions to quickly review each case, assess the level of damage incurred, and understand the specific needs of their customers.
“Banks must not focus on debt collection but should instead show flexibility and responsibility, creating better conditions for businesses to recover,” said Tu. “Bank branches, within their competency, should consider appropriate interest rate reductions for customers and provide bold lending support to help firms resume production and overcome this challenging period.”
In addition to banking support, airlines have joined forces to provide relief for typhoon victims by waiving transportation fees and related costs for relief goods destined for northern Vietnam’s storm-stricken areas.
The international community has also stepped up to assist. The US Mission to Vietnam, through the United States Agency for International Development, has pledged $1 million in immediate humanitarian aid to support the country’s recovery efforts following Typhoon Yagi.
