DPM calls for ways to ease business credit access

Photo: Duc Tuan

At the meeting, DPM Thang said that while the capital market needs time to develop, bank credit remains one of the main sources of capital for the economy.

“The economy’s demand for capital is growing as Vietnam targets double-digit growth. Capital must reach the right place, at the right time, to the right recipients, for the right purposes and at a reasonable cost. Credit growth must create production capacity, improve productivity and generate new growth momentum,” he said.

The government and PM have instructed the State Bank of Vietnam (SBV) to implement measures to help businesses and individuals access capital, including flexible credit growth management; credit programmes for priority sectors and major projects; administrative reforms; digital transformation; and stronger bank-business connectivity.

For businesses facing temporary difficulties but having markets, orders and recovery potential, banks should work with them to restructure cash flows, adjust loans and consider providing additional capital, DPM Thang said. Banks should also provide more advice from the stage when businesses develop production and business plans, helping them complete loan applications, improve financial transparency and enhance their access to capital.

“Banks should not simply be places that provide loans. They must become financial partners that accompany businesses,” he said.

Businesses, however, continue to report difficulties in accessing credit. The SBV has compiled around 34 recommendations from business associations and credit institutions, covering credit access, mechanisms for small and medium-sized enterprises (SMEs), agriculture, forestry and fisheries, green credit, collateral, foreign-currency lending, digital banking, licensing for certain banking products and services, and problems in implementing regulations.

SBV Deputy Governor Nguyen Ngoc Canh. Photo: Duc Tuan

SBV Deputy Governor Nguyen Ngoc Canh said the central bank was targeting system-wide credit growth of around 15 per cent in 2026 and will adjust it in line with economic conditions while ensuring inflation control, macroeconomic stability and banking-system safety.

To increase the supply of capital, the SBV has raised the proportion of State Treasury deposits included in the loan-to-deposit ratio calculation to 50 per cent, while increasing the maximum share of short-term funds that can be used for medium- and long-term lending to 40 per cent. These measures are expected to help meet an additional capital demand of around VND1.7 quadrillion ($65 billion) for 35 major projects.

The SBV has also required commercial banks to launch preferential credit packages from August 2026 for SMEs and sectors identified as growth drivers. Four commercial banks have so far registered to participate, with a combined expected lending scale of around $8 billion, at interest rates below current market levels.

Several other preferential credit programmes are also under way. Cumulative disbursements to the agriculture, forestry and fisheries sector have reached nearly $9 billion. A programme supporting the production, processing and consumption of high-quality, low-emission rice in the Mekong Delta has disbursed $176 million, while a social housing credit programme has reached $535 million.

As of July 31, outstanding loans across the economy stood at nearly $796 billion, up 8.98 per cent from the end of 2025. Corporate loans accounted for nearly $430 billion, or 53.3 per cent of total outstanding credit. Loans to private enterprises exceeded $356 billion, while SME loans stood at more than $153 billion.

“However, capital demand is very large, particularly for medium- and long-term funding for major national projects, while credit institutions mainly mobilise short-term funds and deposit growth is currently slower than credit growth,” Canh said. “This puts pressure on interest rates through funding demand and inflationary pressures. Balancing growth support with macroeconomic stability remains a challenge.”

The SBV has therefore proposed measures to improve capital efficiency, ease pressure on the banking system, particularly for medium- and long-term funding, and improve access to credit in selected sectors.

Dau Anh Tuan, deputy secretary-general of the Vietnam Chamber of Commerce and Industry, said the business community recognised positive results in monetary and credit policy management. However, despite relatively strong credit growth across the system, many manufacturers, SMEs, and agriculture, forestry and fisheries businesses continue to face difficulties accessing capital or have to borrow at high costs.

“Businesses need more than lower interest rates. They need funding with sufficiently long and stable terms that they can anticipate, allowing them to proactively calculate production and business costs,” Tuan said.

Luu Cong Thanh, vice chairman of the Vietnam Young Entrepreneurs Association, said a major impediment is the banking system’s continued reliance on real estate collateral. Cash-flow, contract, invoice and inventory-based lending remains limited due to a lack of verifiable data and appropriate credit-scoring models.

“Businesses are not asking for lower credit standards, nor do they expect the state or banks to bear all the risks. What they want is a more comprehensive assessment based not only on the assets they own, but also on their cash flows, orders, management capabilities and technology,” Thanh said.

Dao Minh Tu, vice chairman and secretary-general of the Vietnam Banks Association, said businesses were currently most concerned about obtaining larger loans, lower interest rates and longer repayment periods.

“The current difficulties lie not only in policies, but also in the internal capacity of businesses and commercial banks, as well as coordination and information sharing among the parties. The banking system cannot bear the entire demand for medium- and long-term capital. Vietnam needs to further develop the capital market, stock market and corporate bond market,” Tu said.

In response to businesses’ concerns over interest rates, lending conditions, collateral and credit access, leaders of several commercial banks said the banking system is continuing efforts to increase capital supply and reduce lending costs. However, they said credit reaching businesses effectively depends on factors beyond interest rates, including system liquidity, businesses’ ability to absorb capital, financial transparency and legal obstacles affecting projects.

DPM Nguyen Van Thang. Photo: Duc Thang

To increase credit supply, DPM Thang called on banks to change their approach and avoid applying a single credit product or assessment method to all businesses, given the different characteristics of manufacturers, traders, exporters, construction companies, technology firms and agricultural businesses.

Credit institutions should design products based on sectors, value chains, cash flows and risk levels. Tax data, e-invoices, payment accounts and credit histories should be used more extensively in credit assessments. Collateral remains necessary for risk management, but it should not become the sole factor determining whether a business can obtain a loan, DPM Thang said.

“Vietnam needs to gradually shift from asking what assets a business has to pledge as collateral to assessing its business plan, cash flow and ability to repay debt," he said.

DPM Thang also asked banks to continue cutting operating costs and accelerating digital transformation to create room for lower interest rates. Regulators and banks should focus on businesses’ actual total cost of capital, including fees and related charges, rather than looking only at advertised interest rates.

The DPM called for obstructions outside the banking sector to be addressed decisively. Issues within the banking sector should be handled by the SBV and credit institutions, while ministries and local authorities must resolve matters under their jurisdiction. Businesses should address problems arising from their own internal capacity.

“Businesses must not be forced to visit multiple agencies and ask multiple authorities without anyone taking responsibility,” he said, calling for every recommendation to have a clearly identified person in charge, task, deadline, responsibility and outcome, with issues followed through to completion.

Alongside efforts to improve credit access, DPM Thang stressed that the banking system “cannot and should not be the economy’s only source of capital.” He therefore assigned the Ministry of Finance to coordinate with agencies to develop the stock market, corporate bond market, investment funds and international sources of capital.

Large corporations and enterprises with long-term investment needs should also diversify their funding sources and gradually reduce their reliance on bank credit, he said.

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