In the context of many fluctuations in the global economy, Vietnam is focusing on promoting economic growth through reforming the capital and credit markets. Challenges in capital flow, exchange rate, and capital absorption capacity of the economy are posing an urgent need to improve credit allocation efficiency and improve financial infrastructure.
Speaking at the workshop "Focus on Vietnam's Credit 2025: Growth, Credit and Capital Market in the New Era" held on the morning of February 27, in Hanoi, Mr. Le Hong Khang - Director of FiinRatings Analysis - commented that Vietnam is facing the problem of capital sources and the ability to absorb capital in the economy.
Currently, credit allocation still has many shortcomings, as most capital flows are still concentrated in large enterprises, while small and medium enterprises face many difficulties in accessing capital sources.
In addition, the rate of using short-term capital to finance long-term investments is increasing, increasing liquidity risks and affecting the ability of businesses to repay debts. One of the biggest problems at present is the sharp increase in capital costs. If before the COVID-19 pandemic, the ratio of financial costs to capital efficiency ranged from 14 - 17%, now this figure has increased to 24 - 29%, creating significant pressure on businesses and the economy in general.
Uneven credit allocation also greatly affects a number of important areas. Real estate credit will increase by 30% in 2024, before that in 2023, this figure was 40%, while the average credit growth rate of Vietnam was only 15%. This shows an imbalance in capital allocation between sectors, leading to a situation where some sectors have excess capital while important sectors such as transportation and industrial production lack capital for development.
From the perspective of state management, Ms. Pham Thi Thanh Tam - Deputy Director of the Banking and Finance Department, Ministry of Finance - said that the Ministry of Finance is currently closely coordinating with international credit rating organizations, while implementing measures to perfect the legal framework on credit rating to create conditions for businesses to access this service more professionally and transparently. Ms. Tam also shared that the Government has been focusing on controlling public debt safety, coordinating fiscal and monetary policies to stabilize the macro economy.
According to Mr. Thomas Jacobs - Country Director in charge of Vietnam, Cambodia and Laos of the International Finance Corporation (IFC), improving credit ratings is not only a private problem of the enterprise but also a strategic goal of the country in attracting international credit flows. He said that to achieve higher credit, Vietnam needs to focus on financial risk control solutions, ensuring the stability of the banking system and the capital market.
However, besides opportunities, Vietnam also faces increasingly fierce competition in the region. Countries such as Indonesia, Malaysia or Thailand are continuously improving the investment environment, enhancing the transparency of the financial market and actively attracting international credit flows. This poses an urgent need for Vietnam to improve the business environment, ensure policy stability and enhance the confidence of foreign investors.
