Big banks are selling both high-value and low-value debts.

Businesses in many fields have voiced their concerns about the lack of capital from banks.

Although Decree 31/2022/ND-CP of the State Government offers support to businesses, cooperatives, and business householders at 2 percent interest rate when borrowing from commercial banks, there is still a strict criterion in place.

Interest rates in the market in recent days have been unfavorable for businesses.

Bank loan interest rates are becoming a heavy burden on businesses, which have been hit hard by Covid-19 for more than a year.

After many months of staying at low levels, deposit interest rates at banks have increased since late May.

Deposits at banks continue to increase, though deposit interest rates have been decreasing. With plentiful capital, banks are inviting individuals who want to borrow money to buy houses and cars.

Local banks have continued slashing deposit rates to as low as 2.5% per annum, in tandem with the Government’s principle of lowering lending rates to support borrowers.

Small and medium enterprises (SMEs) need capital to revive their production, but cannot access bank loans or receive support from local credit guarantee funds.

The Ministry of Public Security has warned about the risk of black credit provided by online lending applications which could threaten social security.

The warning about risks of funding BOT (build-operate-transfer) projects given two years ago is becoming a reality.

More than 2,320 bank officers have lost jobs at VP Bank, and the figure is 1,248 at OCB. The two banks had the highest number of officers losing jobs this year.

Bank loans for build-operate-transfer (BOT) and build-transfer (BT) infrastructure projects by the end of September this year reached nearly VND110 trillion (US$4.72 billion), up 1.85 per cent against the end of 2018.

Vietnam’s credit growth is slowing and can fall behind the central bank’s target of 14 percent for 2019, causing concerns that it could make it difficult for businesses to access bank loans during the remaining months of the year.

Commercial banks’ purchase of real estate corporate bonds is considered indirect lending to real estate firms, experts say.

While the EVFTA and CPTPP have paved the way for Vietnamese enterprises to penetrate the world market, high taxes and interest rates have blocked their path.

Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks.

Bond issuance is becoming an ideal channel for real estate firms to raise capital as credit policies for property development are gradually being tightened, experts said.

Big changes can be seen in the corporate bond market, from issuers and issuance strategies to buyers.