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

Budget collections have unexpectedly increased at a time when people and businesses are still in dire straits. Economists have urged the government to reduce taxes and fees to prevent serious consequences.

Mr. Nguyen Minh Nhat, General Director of Van Xuan Group, said that real estate projects are based on the following capital sources: equity capital, bank loans, bonds and share issuance and capital mobilized from customers.

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).

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

The quality of bank assets has been affected by Covid-19, but the recovery of the banks will depend on their loan portfolios and asset structure.

 VietNamNet Bridge – HCM City authorities have proposed increasing capitalisation for the city’s first two metro lines as the projects continue to face a capital shortage.  

 VietNamNet Bridge – Sluggish progress on two irrigation projects in southern Kien Giang Province have caused major crop losses in Binh Son Commune of Hon Dat District.

 VietNamNet Bridge – Among 878 small-scale industrial zones nationwide, there have been 412 zones which are slow-moving or deliver low investment efficiency due to capital shortage, site clearance problems and few tenants.

The economic downturn, which has dealt a strong blow on businesses, has made the local budgets become empty.