Solving the "thirst" for capital in the private economic sector

Removing difficulties for private enterprises in accessing credit

Sharing at the workshop "Bank capital contributes to promoting the private economy" this morning, March 21, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said that, with the role of the "bloodline" of the economy, the banking sector has recently introduced many policy mechanisms, especially credit with reasonable interest rates to help businesses expand production and business and improve competitiveness.

The State Bank of Vietnam has implemented many solutions to remove difficulties in accessing bank credit, especially for small and medium-sized enterprises in the private economic sector.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu spoke at the workshop "Bank capital contributes to promoting the private economy" organized by Banking Times this morning (March 21).

Deputy Governor Dao Minh Tu stated: By the end of 2024, outstanding credit for private enterprises at credit institutions will reach about VND 6.91 million billion, up 14.72% compared to 2023, accounting for about 44% of outstanding credit in the economy. Of which, outstanding credit for small and medium enterprises will reach VND 2,746,308 billion, up 10.7% compared to the end of 2023.

To date, the private economic sector contributes nearly 50% of GDP, about 30% of state budget revenue and attracts about 85% of the workforce.

"This shows that bank credit capital has promptly met the capital needs for production and business purposes of private enterprises, while contributing to promoting economic development and increasing revenue for the State budget," said Mr. Dao Minh Tu.

The Deputy Governor of the State Bank of Vietnam emphasized: The State Bank of Vietnam regularly directs credit institutions to effectively expand credit, increase access to credit capital for businesses; requires credit institutions to reduce operating costs to reduce lending interest rates to support the economy in general, and the private economic sector in particular, to develop, contributing to promoting growth.

The lending interest rate level has decreased sharply (average lending interest rate in 2024 decreased by 1.24%, in 2025 continued to decrease compared to the end of 2024), contributing to supporting the activities of businesses and people.

Not only providing capital support, Mr. Dao Minh Tu said, banks also help businesses access new technology, expand production scale and improve competitive position both domestically and internationally... These solutions are becoming important catalysts promoting the strong development of the private economic sector, creating sustainable values ​​for the economy.

Identifying private economic development as a long-term strategy and policy of the country, in recent times, the banking sector has actively and synchronously implemented solutions to promote credit growth to meet the capital needs for production and business of people, enterprises in general and private enterprises in particular.

"Specifically, it is necessary to flexibly manage exchange rates in accordance with market conditions, contributing to absorbing external shocks; synchronously coordinate monetary policy tools in each period to limit exchange rate pressure; proactively and flexibly manage interest rates, creating conditions for credit institutions to access low-cost capital sources from the State Bank; direct credit institutions to continue to reduce costs and strongly transform digitally to reduce lending interest rates...", said Mr. Dao Minh Tu.

Many private enterprises are "thirsty" for capital (Illustration photo)

Lack of capital, private enterprises find it difficult to grow

However, according to Mr. Dao Minh Tu, although the private economic sector has developed strongly, businesses still face many difficulties. In particular, the scale of businesses is still small, with only 2% of private businesses being large enterprises, while the majority are small and medium enterprises and micro enterprises.

This leads to limitations in financial resources and competitiveness. This is also one of the reasons why access to capital for businesses, especially small and medium enterprises, still faces many difficulties.

Sharing the difficulties of private enterprises, Chairman of the Vietnam Association of Small and Medium Enterprises - Mr. Nguyen Van Than frankly said: "In every difficult area, we can see the shadow of private enterprises". However, Mr. Than said that in recent times, the banking industry has always accompanied small and medium enterprises. The outstanding debt ratio of enterprises can be said to be very high. "High outstanding debt proves that small and medium enterprises are developing", Mr. Than affirmed.

Mr. Nguyen Van Than - Chairman of Vietnam Association of Small and Medium Enterprises

For businesses, Mr. Than emphasized, it is necessary to think about how to ensure that banks feel secure in lending. Along with that, the banking industry also needs solutions to improve the quality of lending services. "There is no other way but through science and technology," Mr. Than said.

The Chairman of the Vietnam Association of Small and Medium Enterprises pointed out the reality: There is a phenomenon that banks are focusing on lending to large enterprises. "We also need to sympathize because the pressure from revenue to banks is very large. Thus, small and medium enterprises that want to borrow need to focus on linking up into one address, through the Association to introduce businesses that need to borrow capital to banks. It is necessary to link up and work side by side so that the Association can help businesses. There are many options for businesses to mobilize capital, in addition to banks, there are also funds... But it is still necessary to create conditions for small and medium enterprises to have easier access than borrowing from banks," Mr. Than suggested.

Currently, the private economic sector contributes nearly 50% of GDP, more than 30% of the state budget, creates more than 40 million jobs, accounting for about 85% of the total workforce in the economy. However, the majority of private enterprises are small and medium-sized (accounting for 98%), and access to bank capital is still limited.

By the end of 2024, outstanding credit balance for private enterprises at credit institutions will reach about VND 6.91 million billion, an increase of 14.72% compared to 2023, accounting for about 44% of outstanding credit balance of the economy.