The capital flow for businesses starts to be opened

VCN - Dr. Tran Du Lich, a member of the National Monetary and Financial Policy Advisory Council, spoke at the seminar "Remove difficulties in capital for businesses" held by Nguoi Lao newspaper on December 13.
Instead of Instead of "squeezing", it is necessary to "direct" the capital flow into real estate
The capital flow for businesses starts to be opened
Delegates at the talk show

Dr. Tran Du Lich compares the amount of money in the economy to a lake full of water, which means that the economy is not short of money. But businesses are like dry fields, lacking water.

The reason is that the channels leading from the reservoir to the fields are blocked. This means there is no shortage of money but the business is still short of capital.

Recently, the State Bank has officially opened the credit room for banks that do not race in interest rates, do not increase lending rates, and are allowed to increase by 1.5%-2% of total outstanding loans.

Besides, if the team dealing with bottlenecks of the real estate market can remove the administrative procedures of the projects, it will also create the next capital channel.

Dr. Tran Du Lich also said that it is necessary to continue implementing support packages in Resolution 11 of the Government on the mechanism of 2% interest rate compensation and who can borrow. At the same time, there is an overall measure to coordinate both monetary and fiscal policy. In particular, it is necessary to amend Decree 65 on the issuance of corporate bonds as soon as possible, to consider corporate bonds as a very important channel for medium-term capital sources for businesses, and at the same time to reduce the medium-term capital burden for commercial banks.

“If these solutions are implemented synchronously and gradually, the capital will flow into the fields of economy. I believe, from now on, there will be more capital flowing into the fields,” said Dr. Tran Du Lich.

Mr. Truong Tien Dung, Standing Vice Chairman of Ho Chi Minh City Food Association, said that after the difficulties of the Covid-19 pandemic in 2021, businesses continue to face inflation in many countries, large expenditures and expenses. Input costs are all high in terms of raw materials, auxiliary materials, bags, transportation fees, and wages.

In addition, enterprises also face a shortage of labor, many production lines are broken, it is difficult to recruit new workers and have to spend more on training costs while labor productivity decreases.

These factors cause the product cost to increase. In addition, the rising exchange rate greatly affects the cost of importing raw materials and supplies. Therefore, food businesses face many difficulties to supply food to the market.

The Tet holiday is approaching, food businesses are required to ensure the supply of goods to serve the market. Accordingly, businesses expect the supply of goods to increase by 15-20% compared to the same period last year and keep prices stable, maintain quality, promotions and support will be issued by distributors to sell products.

That fact shows that businesses are in dire need of capital.

“The Prime Minister has directed the State Bank to quickly supply capital to the economy, which is a good sign. However, there is a delay from policy to practice. Enterprises want to be able to access capital more easily to overcome difficulties soon,” Mr. Dung emphasized.

Participating in the seminar, Dr. Pham Chi Quang, Director of the Monetary Policy Department at the State Bank of Vietnam, said that the source of capital for the economy is not only bank capital, but also bonds and stocks. The banking industry cannot always worry about medium and long-term capital for businesses because banks are also businesses.

While 80% of banks' capital is short-term capital, the remaining 20% is capital and medium and long-term capital sources. However, the banking industry is providing medium and long-term loans, accounting for over 50%.

According to Dr. Pham Chi Quang, this leads to two big risks. The first is the risk of liquidity and the payment to depositors if the cash flow is not good. The second risk is interest rates. Specifically, short-term interest rates fluctuate continuously, while medium and long-term interest rates are usually adjusted only once a year.

The State Bank of Vietnam has also issued many legal regulations, including the safety ratio, the ratio of using short-term capital for medium- and long-term loans with a 5-year roadmap for banks to adjust their operations in a more sustainable way. For commercial banks to properly perform their functions to provide short-term capital for the economy and provide banking services. The medium and long-term capital channel for the economy must go through the capital market, corporate bond market, stock market, etc.

However, since the beginning of the year, credit is still the largest capital channel for the economy with credit growth of over 12%, equivalent to nearly VND 1.4 quadrillion has been brought into the economy. However, it is still not enough because the needs of businesses are very large.

Therefore, the State Bank on the one hand still loosens the credit room. Accordingly, only about 3 weeks at the end of December for the banking system to disburse VND 300,000 - 400,000 billion. Although the capital needs of businesses and the economy are very large, credit institutions must lend on terms and conditions, and cannot lower the standard. Because the money lent out is not the bank's money but from the mobilization of the people.

By Nguyen Hien/Bui Diep

Related News

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Central bank starts huge credit package for social housing projects

Central bank starts huge credit package for social housing projects

Developers of social housing projects buyers of this kind of houses are entitled to benefit from a credit package worth 120 trillion VND (5.1 billion USD) which was started by the State Bank of Vietnam (SBV) earlier this month.
Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline

Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline

VCN - A representative of the Ministry of Finance said that the Ministry had organized a specialized inspection team on insurance distribution through banks for four insurance companies. The team is finalizing inspection conclusions.

Latest News

Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Although holding the number one position in the world in exporting cashew kernels for many years, the position of Vietnam's cashew industry in the world cashew value chain is very small because it mainly exports kernels with preliminary treatment.
HCM City’s industrial production index down 0.9% in Q1

HCM City’s industrial production index down 0.9% in Q1

Ho Chi Minh City’s Index of Industrial Production (IIP) in the first quarter of 2023 declined by 0.9% compared to the same period last year, the municipal Department of Industry and Trade reported at a press conference on April 3.

More News

Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries export value was estimated at 1.85 billion USD in the first quarter (Q1) of this year, a fall of 27% compared to the same period last year due to lower consumption and import demand under the impacts of inflation and economic recession, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Quang Ninh aims to attract quality FDI inflows

Quang Ninh aims to attract quality FDI inflows

The northern coastal province of Quang Ninh has strengthened measures to attract quality foreign direct investment (FDI) inflows, especially from big names in the processing-manufacturing industry.
Exports face many difficulties

Exports face many difficulties

VCN - In the first months of 2023, the absence of export orders plus the downward trend in commodity prices have slowed down trade activities.
Manufacturing enterprises increase their competitiveness thanks to digital transformation

Manufacturing enterprises increase their competitiveness thanks to digital transformation

VCN - Overcoming difficulties in 2023 requires manufacturing enterprises to self-improve and innovate. Digital technology is one of the effective solutions to help manufacturing businesses grow and compete.
32nd Việt Nam Expo promises to boost business linkages

32nd Việt Nam Expo promises to boost business linkages

The 32nd Việt Nam International Exhibition (Vietnam Expo) will take place in Hà Nội from April 5-8 with the participation of more than 500 domestic and foreign enterprieses, the event’s organisers have announced.
Prevention of price risks before news that Indonesia increases rice imports in reserve

Prevention of price risks before news that Indonesia increases rice imports in reserve

VCN - In response to demand signals from key markets such as Indonesia and the Philippines, the Import-Export Department (Ministry of Industry and Trade) suggested that rice exporters actively monitor the market situation and fully assess the opportunities as well as risks to build a trading plan.
Japanese investors highly appreciate Vietnamese property market

Japanese investors highly appreciate Vietnamese property market

Representatives from around 180 Japanese businesses and investors on April 1 attended a Tokyo workshop on Vietnamese real estate, during which many of them highly appreciated the potential of Vietnam’s property market.
Seafood enterprises propose to remove obstacles from exporting to the EU

Seafood enterprises propose to remove obstacles from exporting to the EU

VCN - Seafood enterprises are facing inadequacies in applying for material certification (S/C) and food safety certificates (H/C), which affects the production and export of seafood to the EU.
Need to effectively use tools to prevent exchange rate risks in import and export field

Need to effectively use tools to prevent exchange rate risks in import and export field

VCN - The exchange rate pressure in 2023 is expected to be weaker than last year, especially in the context of tightening monetary policies reaching the final phase. However, fluctuations in the economy and financial markets are still very unpredictable, and exchange rate developments may affect import and export activities.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Looking back to 2022, while the export turnover of the cashew industry reached US $ 3.08 billion, the import turnover of raw cashews consumed US $ 2.678 billion.
Mobile Version