More than 10 years of searching for bank capital
Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City Branch (Region 2), said that the agency will boost credit growth in the second half of the year, focusing on the trade, services, tourism and export sectors to support economic growth targets.
However, the ability to access capital for construction enterprises, small and micro enterprises still faces many obstacles. Despite having collateral, Mr. Nguyen Van Manh, General Director of Hanoi Housing Construction and Trading Joint Stock Company, said that for more than 10 years, his company has been unable to borrow capital from banks. Complicated procedures, strict lending conditions, combined with slow disbursement of public investment, have forced enterprises to rely on their own capital, or mobilize from partners and joint ventures to maintain operations.
Similarly, Ha Thanh Investment and Trading Joint Stock Company (Hanoi) was supported to open an account but still could not borrow capital due to lack of collateral. Chairman of the Board of Directors Nguyen Duc Xuan shared: “We won 2-3 bids to supply medical equipment worth about 50 billion VND but were still refused loans. The bank required proof of financial capacity and confirmation of winning the bid, but the investor could not guarantee, forcing us to find ways to rely on other large enterprises to stand in our name, which means losing development opportunities.”
Some micro-enterprises also reported that, even when they received loans, they received almost no support or advice from the bank. Mr. Dinh Duy Hung, owner of a small business in Hanoi, shared: “Large businesses were also small businesses. If properly supported, many small and medium-sized businesses could have grown strongly, but now we have to almost swim on our own in every step, including finance.”
In addition, lending interest rates are still considered high compared to the tolerance of businesses when profit margins are low. Meanwhile, many businesses are forced to borrow short-term to enjoy low interest rates, then use that capital for medium and long-term investments, creating a vicious cycle that is difficult to break.
Uneven credit distribution, lack of collateral, short land lease terms, cumbersome procedures and unattractive interest rates are major barriers that make many small and micro enterprises "tired" in looking for bank capital but still fail.
In fact, most of the credit flow is still concentrated in large corporations, reputable enterprises or real estate projects. Meanwhile, small and medium enterprises - which account for nearly 98% of the total number of enterprises operating in Vietnam - have access to less than 20% of total outstanding credit, according to data published by the State Bank.
Faced with this situation, many experts believe that there is a need for credit products specifically designed for small and micro enterprises, such as unsecured loans based on business cash flow, output contracts, or assets formed from loan capital.
At the same time, the banking system needs to innovate its credit assessment methods, instead of relying solely on collateral, it needs to expand to actual transaction data, business reputation and profitability. Simplifying procedures and shortening application processing time is also the key to helping capital reach the right place, at the right time, and to the right people.
Credit growth but still "out of sync"
According to the State Bank of Vietnam (SBV), credit growth was positive in the first five months of the year, reaching 6.52%, more than double that of the same period last year. Mr. Nguyen Duc Lenh, Deputy Director of the SBV Ho Chi Minh City Branch, said that capital flows were mainly pushed into production and business sectors and industries that play a role in driving growth.
Notably, commercial banks have coordinated with trade promotion centers and business associations to support the export sector, one of the three economic pillars in the context of global fluctuations due to US tariff policies.
In addition, policy credit programs such as social housing loans, disbursement of aquatic and forestry credit packages, or housing support for people under 35 years old also contribute to promoting production, business and recovering the real estate market.
However, contrary to the general growth picture, many businesses, especially small and medium-sized enterprises, still report difficulty in accessing bank capital. According to experts, the reason is that although credit has increased, it is not evenly distributed among industries and business sizes.
Most capital flows still go to large corporations, branded businesses or real estate projects. Meanwhile, small and medium-sized enterprises, which account for a large proportion of the economy, are often “marginalized” due to lack of collateral or weak credit records.
In terms of interest rates, although there have been adjustments to reduce them, they are only applied selectively to a number of priority sectors and within a certain time frame. Loan conditions are still very strict: businesses must demonstrate financial potential, a feasible business plan, stable profits and have collateral, criteria that most small and micro businesses cannot meet.
This reality causes credit growth to not spread evenly, and many businesses, despite being in dire need of capital, still cannot "touch" the necessary financial resources.
Faced with this situation, experts recommend the need for more flexible credit products such as unsecured loans based on business cash flow, loans based on output contracts, or loans based on assets created from loan capital.
At the same time, it is necessary to expand the credit assessment model based on actual transaction data instead of relying only on collateral, while simplifying the process and shortening the application processing time to promptly support businesses.
Source: https://baodaknong.vn/dong-von-ngan-hang-chua-chay-deu-doanh-nghiep-van-khat-von-255848.html
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