return icon

Businesses seek capital as banks run out of ‘credit quota’

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

Nguyen Quoc Ky, president of Vietravel Holdings, said he had contacted many banks but still could not get a new loan, while it’s unclear if old credit contracts will be extended.

Many banks said they could not provide new loans because they are running out of ‘credit room’. Meanwhile, others simply are telling him to wait. Companies need capital to prepare for business activities in the last months of the year. The company needs to order accommodations, air tickets, food and other services.

Nguyen Thanh Son, director of ATP Co, said the lack of capital has affected many enterprises. Some partners of the company cannot pay debts to ATP. Businesses owe money to each other, while banks are very slow in capital disbursement.

Vitas said its member companies are facing difficulties as input costs have increased and the supply chain has been disrupted. Many companies cannot buy and store input materials because their capital has been exhausted.

The Vietnam Association of Small and Medium Enterprises (VinaSME) said that enterprises find it difficult to access bank loans because of the limited credit quota for banks. In general, capital demand increases sharply in Q3 as businesses have to prepare products for year-end and Tet holiday sales. 

Nguyen Phuoc Hung, deputy chair of the HCM City Union of Business Associations, said the economy is recovering strongly and businesses need capital to restore disrupted supply chains, recruit new workers, and renovate machines and equipment. 

The expenses for input materials and premises are on the rise.

Many banks said they are running out of ‘credit room’. Agribank, for example, said its credit growth rate for 2022 is 7 percent, and it has already used 6 percent.

Other banks, such as Vietcombank, VPBank, HDBank, SCB, SeABank, MSB and Techcombank, have had credit growth rates of 8-10 percent in H1 so they don’t have much ‘room’ left.

In May, banks warned about the credit room issue. In June, commercial banks asked for more but their proposals have not been accepted.

Because of capital shortage, some banks have pushed their lending interest rates. Businesses complain that some banks have raised the interest rate by 0.5-1 percentage points since early August.

While some believe that it’s necessary to tighten lending to help curb inflation, others think that Vietnam needs to focus on fiscal policy rather than monetary policy, because inflation is pushing up costs.

Tran Thuy


Autumn on Con Dao

Con Dao is at its peaceful and charming best in the early days of autumn, with clear blue water and romantic sunset.

Digital content firms are at disadvantage in international lawsuits

Many enterprises say that Vietnam lacks effective tools to fight unhealthy competition. There are legal documents to cover the issue but it is difficult to apply and enforce them.

MPI: Growth scenario in 2023 of about 6.5 percent

Assessing that difficulties and advantages will be inextricably intertwined in 2023 but the difficulties will far overweigh the advantages.

HCMC welcomes first group of cruise ship tourists after Covid-19 pandemic

The Saigon Port Joint Stock Company, in collaboration with the Department of Tourism of Ho Chi Minh City and some units, on October 2, held a ceremony to welcome the luxury cruise ship Le Laperouse of Ponant (France).


Investigations on corruption cases to expand: official

Rock tales in Ganh Yen

Ganh Yen is located along the fishing village of Thanh Thuy in Binh Hai Commune, Binh Son District, Quang Ngai Province.


GDP growth to hit 8% this year in base-case scenario: Official

Doan Thien An crowned Miss Grand Vietnam 2022

Doan Thien An, 22-year-old beauty from the Mekong Delta province of Long An, was crowned Miss Grand Vietnam 2022 after surpassing 49 other contestants at the pageant finale in Ho Chi Minh City on October 1.

Vietnam’s GDP growth to be among the highest in SE as int’l organisations forecast

Vietnam’s GDP growth in 2022 and 2023 will be among the highest in Southeast Asian as shown in many international organisations’ forecasts and assessments on the Vietnamese economic outlook.

Amid global unrest, VN billionaires incur huge losses

Despite good news about the economy, including high growth rate and low inflation, stock prices have been sliding all over the globe.

Vietnam needs to expand airport network to relieve pressure on infrastructure

Vietnam ranks No.1 on the list of the 25 countries with the fastest post-pandemic recovery of the domestic aviation market.

Binh Duong lures foreign investors with special care

The southern province of Binh Duong has taken the lead for foreign direct investment (FDI) attraction thanks to its methods of taking care of investors.

Securities under pressure from external risks

Although the US Federal Reserve (FED) raised the interest rate in the hope of reducing inflationary pressure, it has come as a shock to see a rise in the core US inflation data, despite falling oil prices.

Unemployment rate falls, workers' incomes increase

According to the General Statistics Office's Report, the labor and employment situation in the third quarter of 2022 continued to recover.

The most expensive birds in Vietnam

Red-whiskered bulbs (Pycnonotus jocosus) with original colors are priced at VND500 million and tiny chickens with original colors sell for thousands of USD.