It is difficult to borrow without collateral.
At the workshop "Unblocking capital sources to the market" held in Ho Chi Minh City on April 5, experts and managers all acknowledged that unblocking capital sources is like opening "blood vessels" for the national economy.
Workshop on Unblocking Capital Sources to the Market organized by Tuoi Tre Newspaper in Ho Chi Minh City. (Photo: Q.D)
Ms. To Thi Tuong Lan, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that by the end of 2023, about 40% of seafood enterprises will no longer have assets to mortgage. This makes access to capital extremely difficult.
Currently, businesses are borrowing from banks with common interest rates of 6-7%/year, while businesses without collateral have interest rates of 8-8.5%, which is quite high.
“Seafood processing and exporting enterprises hope that loan interest rates will be further reduced, especially the USD loan interest rate at below 4%, this is a suitable interest rate for enterprises to grow,” said Ms. Lan.
Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association. (Photo: Q.D)
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, shared that currently, home buyers have not been able to access the VND120,000 billion credit package due to the lack of social housing supply. Because of the lack of borrowers, banks have not been able to disburse.
According to Mr. Chau, the 120,000 billion VND credit package for social housing is not attractive enough when interest rates increase every 6 months.
On the real estate side, businesses currently no longer have collateral to borrow capital, so banks cannot lend. To keep capital flowing in real estate business, the most effective solution is “non-credit”, which means removing legal obstacles for businesses. Only when projects are implemented will capital flow from banks.
“When there are real estate products, people will buy houses, borrow money, and credit will flow smoothly,” said Mr. Chau.
Many solutions to unlock capital sources
Mr. Nguyen Dinh Tue, Director of the Small and Medium Enterprise Support Service Center, said that in the first two months of 2024, the export situation is showing signs of improvement, tourism and some industries are growing quite well, along with lower bank interest rates, which will lead to an increase in business loan demand.
During his survey, Mr. Tue found that businesses often complained of being thirsty for capital and having difficulty accessing capital, while banks admitted that they really needed businesses to lend money.
Mr. Tue said that the reason why many businesses cannot easily access credit sources is because of difficulties in securing assets, non-transparent accounting and weak management.
Through contact with businesses, the biggest difficulty at present is still not being able to improve the ability to sell and consume products and goods. To overcome this situation, Mr. Tue proposed that there should be support from the State.
Specifically, the State needs to strengthen solutions to stimulate consumption and investment, promote public investment disbursement and support businesses to promote trade. In addition, the policy of reducing 2% value added tax will continue to be extended instead of ending on June 30.
On the bank side, Mr. Tue suggested lowering lending rates for old loans, reducing the gap between deposit interest rates and lending interest rates. At the same time, banks should also simplify procedures to increase access to loans and promote credit.
On the borrower side, Mr. Tue said that businesses need to proactively apply science and technology, improve product quality, save costs, and reduce prices to boost consumption of goods.
Mr. Dao Minh Tu, Permanent Deputy Governor of the State Bank. (Photo: AL)
Mr. Dao Minh Tu, Permanent Deputy Governor of the State Bank of Vietnam (SBV), shared that the SBV itself and commercial banks have also launched preferential credit packages to encourage, motivate and focus on priority areas. Typical examples include the VND120,000 billion package for loans for social housing, workers' housing or the VND30,000 billion package for the forestry and fisheries sector...
According to Mr. Tu, currently, banks have also applied technology to provide maximum support for credit activities, especially loan procedures. Loan time is shortened to only a few days, which helps businesses and people borrow capital more conveniently.
"The State Bank also focuses on removing difficulties for small and medium enterprises and cooperatives so that these models can access capital better. These are the models that account for a large number in the economy," said Mr. Tu.
According to the Deputy Governor of the State Bank, providing capital for businesses and the economy is very important, especially in the current difficult conditions, the capital issue is even "hotter".
Currently, the economy's capital mobilization has reached about 13.73 million billion VND. The system's liquidity is ready to ensure capital for any project that meets credit standards and conditions. The total outstanding debt of the entire economy is currently 13.76 million billion VND. The deposit balance of commercial banks is relatively abundant. The mobilization and outstanding debt figures show that the amount mobilized is almost the same amount lent.
Regarding credit growth, as of March 28, credit in the entire economy increased by 0.9%, while it was negative in January and February. So far, credit has increased by about 1%. With this positive sign, the economy is starting to absorb capital. Mr. Tu hopes that in the second, third and especially fourth quarters, credit capital will reach the expected annual growth rate of 14-15%.
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