High interest rates prevent businesses from expanding investment
Currently, the capital needs of businesses are not only for working capital but also for investment in project development, green transformation, digital transformation and technology innovation. Ms. Lam Thuy Ai - General Director of Mebi Farm Joint Stock Company - said that investment, green transformation, and digital transformation activities of businesses are currently mainly based on bank credit. However, rapidly increasing lending interest rates are becoming a major barrier.
Previously, the interest rate was about 8-9%/year, now it is up to 11-12%, even 14-15%/year. If businesses are not able to pay loan interest, they will have to narrow down their business or sacrifice some profits" - Ms. Ai said.
Similarly, Mr. Le Huu Nghia - General Director of Le Thanh Construction Trading Co., Ltd. said that for long-term loans to invest in real estate or projects with an investment period of 3 years or more, the current interest rate is at least 12%, fluctuating from 12-15%/year.
This interest rate makes it difficult for businesses to generate enough cash flow to cover capital costs. When businesses set a double-digit growth target but capital costs are already above 10%, they will find it difficult to boldly invest, tend to slow down and wait for new opportunities" - Mr. Nghia said.
According to Ho Chi Minh City Statistics, VND deposit interest rates at commercial banks in the city in July 2026 increased compared to the previous month in terms.
As of July 31, 2026, the total mobilized capital of credit institutions in the area is estimated at 5,694 trillion VND, an increase of 1.1% compared to the previous month and an increase of 16.1% compared to the same period. Meanwhile, outstanding credit balance increased by 18.4% compared to the same period.
Need to expand medium and long-term capital sources
Mr. Nguyen Ngoc Hoa - Chairman of the Ho Chi Minh City Business Association - said that the current capital bottleneck is a common difficulty of the business community. The capital demand for development investment is long-term capital, while if only relying on bank credit, it mainly solves the demand for working capital.
Long-term investment capital for 5-year, 10-year, 15-year, even 20-30 year projects is still a big problem" - Mr. Hoa said.
According to him, it is necessary to soon form a capital market, take advantage of and attract new capital sources. One of the solutions is to promote the equitization of state-owned enterprises to attract external cash flow; at the same time, take advantage of idle money from insurance funds and capital deposited at the Treasury.
Mr. Hoa also said that it is possible to study using budget revenue sources to advance capital, support businesses and public investment projects; and issue government bonds to mobilize capital.
However, economic expert Tran Du Lich - former Director of the Ho Chi Minh City Institute of Economics - said that it is difficult to expect a sharp decrease in interest rates this year. The economy needs both high growth and inflation control. Therefore, deeply reducing capital costs is not easy.
According to experts, the economy is too dependent on the commercial banking system, while banks mainly supply short-term capital. Medium and long-term capital needs to be shared by the capital market and financial institutions. The stagnation of the corporate bond market continues to put capital pressure on banks.
Therefore, besides efforts to reduce capital costs, the development of the capital market and diversification of mobilization channels are considered urgent requirements for businesses to be able to invest in projects lasting decades, thereby creating a foundation for the goal of double-digit growth.
