The State Bank of Vietnam is willing to provide liquidity to credit institutions to sustain their payment capability, especially at the end of the year when demand for funds often peaks, its deputy governor Dao Minh Tu has said.

The increase in credit growth rate limit will help improve liquidity and provide working capital to Vietnamese businesses, but it won’t fully satisfy their need for capital.

Enterprises are hoping for more policies to help them overcome financial difficulties, maintain operations and to take advantage of post-pandemic recovery opportunities.

Many Vietnamese businesses have boosted foreign fundraising to cope with their capital shortage amid the country's tightened monetary policy.

The long-term credit push to support the economy has a distorted capital flow.

A lack of capital is making it difficult for businesses to maintain operations.

The lack of mid-and long-term investment in the real estate market and ambiguous regulations related transactions are hampering its healthy development.

Financial resources for the real estate sector including bonds, funds raised via the stock market, and especially bank loans contracted substantially in the third quarter of this year.

After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022.

To solve the problem of lacking capital, real estate businesses must change to suit the situation. They must focus on the capital market (issuing corporate bonds, stocks).

Minister of Finance Ho Duc Phoc has been sending messages about the development of the capital market, following the Government’s conference last week.

Developing the capital market will help in promoting State Owned Enterprises (SOEs) to mobilize capital and reduce the proportion of commercial credit loans, and diversify in forms of mobilization to supplement capital.

 Although progress has been realised by Viet Nam in recent years, the country is still unable to finance all the needs of its hungry productive sector, including private firms and SOEs.

 Vietnam must develop its capital market to avoid the current dependence of long-term investment capital on the banking system, State Bank of Viet Nam Governor NguyenVan Binh has suggested.