Bank credit plays a key capital channel

Bình Nguyên |

In the context of Vietnam setting a high GDP growth target in the coming period, the banking credit system is still identified as the main capital channel, playing an important role in providing capital for production, business and development investment.

Manufacturing enterprises need large capital

In Vinh Tuong commune (Phu Tho), a steel rolling mill project with a total investment of trillions of VND is being implemented, leading to a large capital demand for both the construction and operation phases.

Mr. Tran Minh Xuan - Deputy General Director of Vietnam Steel Joint Stock Company Vinasteel - said that investment capital is not only for production lines but also for warehouses, logistics and initial working capital. With a capital recovery cycle of 7 - 10 years and cash flow depending on the construction market, access to stable capital sources and reasonable costs are decisive factors for project efficiency.

According to Mr. Xuan, although the financial market is increasingly diverse with many capital mobilization channels such as stocks, investment funds or financial cooperation, bank credit is still the foundational capital source for large production projects. The reason is thanks to the mechanism of disbursement according to schedule, flexible debt repayment schedules and long-term credit relationships, helping businesses stabilize in the investment phase.

The steel industry is a typical example of the large capital demand of the manufacturing sector. In 2025, crude steel production reached nearly 24.7 million tons, an increase of about 12% compared to the previous year.

However, the project implementation process also shows that capital mobilization still faces many challenges. For industrial projects with a long life cycle, interest rates are not only a parameter in the financial plan but also directly affect the capital recovery capacity and profit margin of enterprises.

In addition, the assets of the project in the initial phase are mostly assets formed in the future, so the valuation and acceptance as collateral still have certain obstacles in the current mechanism.

According to Vinasteel's leaders, in that context, access to stable and long-term capital not only determines the project implementation progress but also affects the enterprise's ability to expand investment in the long term.

Bank credit continues to be the main capital channel

Vinasteel's case shows the large and long-term capital needs of the manufacturing sector, and also reflects the important role of the banking system in providing capital for the economy.

Mr. Nguyen Quang Ngoc - Deputy Head of Credit Policy Department of Vietnam Bank for Agriculture and Rural Development (Agribank) - said that by the end of 2025, Agribank's total outstanding credit balance reached nearly 2 million billion VND, an increase of nearly 15% compared to the end of 2024.

In addition to traditional sectors, Agribank also expands credit to sectors that have the potential to create new growth momentum for the economy. Including a preferential credit package of 60,000 billion VND for businesses investing in infrastructure and digital technology. The bank also promotes green credit with outstanding loans reaching more than 28,000 billion VND by the end of 2025, focusing on sectors such as clean agriculture, sustainable forestry, renewable energy and circular economy.

However, besides expanding the scale of credit, the ability of businesses to access bank capital, especially the small and medium-sized enterprise sector, still has points that need to be further improved.

Dr. Nguyen Minh Phong - former Head of Economic Research Department, Hanoi Institute for Socio-Economic Development Research - said that one of the current bottlenecks lies in the ability of businesses to access bank credit capital, especially the small and medium-sized enterprise sector. According to Mr. Phong's assessment, currently only about half of small and medium-sized enterprises have access to capital from the banking system. The rest face difficulties due to lack of collateral or not fully meeting the requirements of transparency in financial management and cash flow. This makes it difficult for many businesses to access official capital sources.

This reality shows that, besides expanding the scale of credit, the story of improving businesses' access to capital is still an issue worth continuing to pay attention to and remove.

Bình Nguyên
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