Capital mobilization solutions and new motivation for Khanh Hoa

(Chinhphu.vn) – Economic experts and bank representatives have proposed solutions on capital mobilization, sustainable growth strategies and local advantage positioning. These solutions aim to support the province in achieving its long-term, effective and breakthrough development goals.

Government leaders, experts and delegates at the workshop " Khanh Hoa - Realizing the vision of a centrally-run city - Breakthrough in the new era" - Photo: VGP/Thu Sa

Capital mobilization for Khanh Hoa: Proposing a new mechanism for project bonds

At the workshop "Khanh Hoa - Realizing the vision of a centrally-run city - Breakthrough in the new era" organized by Khanh Hoa Provincial People's Committee in coordination with Tien Phong newspaper on July 25, in Khanh Hoa, Mr. Nguyen Xuan Thanh, Lecturer at Fulbright University Vietnam, analyzed the limitations of the current financial mechanism and proposed new solutions for capital mobilization to serve the socio -economic development of Khanh Hoa province.

Mr. Nguyen Xuan Thanh, Lecturer at Fulbright University Vietnam - Photo: VGP/HT

According to Mr. Nguyen Xuan Thanh, the State Budget Law stipulates that the local public debt ceiling does not exceed 60% of the annual budget revenue that the locality enjoys. For Khanh Hoa, after merging with Ninh Thuan , this limit is only about 15,000 billion VND. Meanwhile, the investment demand of the province is very large. This figure is too small compared to the outstanding debt of about 300,000 billion VND that businesses and people are borrowing from the banking system, making current resources unable to meet the breakthrough development goal.

Mr. Thanh proposed that Khanh Hoa province implement a capital mobilization channel through the issuance of "project bonds", with the main characteristics: these are bonds associated with specific infrastructure projects, capable of creating land funds and increasing land value. This type of bond is not considered a local government bond, is not included in public debt or is limited to 60% according to the State Budget Law. The bond will be secured by land use rights formed from infrastructure projects.

Proposed implementation process: the province issues bonds to raise capital; this capital is used to build infrastructure, create clean, high-value land; after the project is completed, the province organizes an auction of the land fund; the proceeds from the auction will be used to repay capital to bond investors.

This mechanism helps localities avoid the situation of "selling green rice" (handing over land at low prices without infrastructure), proactively mobilizing capital, and taking advantage of added value from infrastructure investment. At the same time, this is a channel to attract institutional investors such as investment funds and insurance companies, reducing dependence on bank credit. The solution can be applied to public investment projects, PPPs or private projects.

Professor, Dr. Tran Dinh Thien, an economic expert, said that Khanh Hoa after merging with Ninh Thuan has special advantages. In addition to traditional advantages, the province's scale is getting bigger. The two localities previously had special advantages, now not only combined but also resonated, creating outstanding potential strength.

"Khanh Hoa needs to adjust or renew its development plan, re-select priority goals and breakthroughs to suit the new development structure after the merger. Setting high growth targets needs to be accompanied by an unusual approach, not following the beaten path. In addition, the most important resource in the coming period is creative people and creative intelligence. Khanh Hoa needs to focus on developing high-quality human resources, combined with advances in artificial intelligence to create breakthrough development power," expert Tran Dinh Thien suggested.

Ms. Ha Thu Giang, Director of the Department of Credit for Economic Sectors (SBV) - Photo: VGP/HT

Bank ready to accompany and growth strategy

Ms. Ha Thu Giang, Director of the Department of Credit for Economic Sectors (SBV), emphasized the commitment to accompany and provide credit capital to promote Khanh Hoa's economic development in the period of 2025-2030.

According to Resolutions 01 and 25 of the Government, Khanh Hoa after merging with Ninh Thuan is assigned GDP growth targets of 10% and 13% in 2025, respectively. To achieve this double-digit target, the State Bank of Vietnam said it has implemented many synchronous measures: controlling inflation, reducing interest rates, simplifying loan procedures and directing credit flows to priority areas such as production and business, industry, energy, tourism and urban construction.

In addition, banking activities in Khanh Hoa are currently quite active with 32 credit institutions and 53 level I bank branches. As of the end of June 2025, the total mobilized capital reached nearly 175 trillion VND, the total outstanding credit balance was approximately 194 trillion VND. Although the mobilized capital only meets about 90% of credit demand, the banking system still ensures capital demand through flexible regulation from the headquarters. The credit scale, including loans from outside the province, has reached nearly 300 trillion VND.

In addition, implementing Resolution 01-NQ/TU of Khanh Hoa Provincial Party Committee issued on July 14, 2025 on the target of double-digit economic growth, the State Bank of Vietnam committed to continuing to prioritize credit for four economic pillars including industry, energy, tourism services and urban construction. Capital sources will also be focused on private enterprises, especially small and medium enterprises, supporting industries, innovation, green transformation and digital transformation.

"With the support of the banking sector, the determination of the government and the efforts of businesses, Khanh Hoa will successfully create a dynamic, modern and sustainably developing economic center," the representative of the State Bank emphasized.

Mr. Nguyen Viet Cuong, Deputy General Director of Vietcombank, affirmed Vietcombank's commitment - Photo: VGP/HT

From the perspective of commercial banks, Mr. Nguyen Viet Cuong, Deputy General Director of Vietcombank, affirmed Vietcombank's commitment to accompanying the development of Khanh Hoa. He highly appreciated the thorough preparation and strategic vision of the province through the workshop and introduction activities.

Mr. Nguyen Viet Cuong emphasized the decisive and scientific leadership role of the Provincial Party Secretary Nghiem Xuan Thanh, former Chairman of Vietcombank. At the same time, Mr. Nguyen Viet Cuong pointed out the main potentials of Khanh Hoa: marine economy and high-end tourism; seaports and logistics; clean energy; cultural and heritage tourism; abundant, trained human resources; and regional connectivity.

Vietcombank Deputy General Director affirmed: The bank has accompanied major investors in Khanh Hoa from the beginning. Currently, this bank is the second largest debt holder in the province, about 30,000 billion VND. With a total debt balance of the whole system reaching 1.6 million billion VND, Vietcombank affirms its position as a leading bank, ready to support key projects in Khanh Hoa. In the coming time, Vietcombank plans to continue providing financial solutions and preferential credit packages, including a 500,000 billion VND package for infrastructure and digital technology.

"The bank will also cooperate with the province in attracting domestic and foreign investors, especially Vietcombank's large FDI customers. It is expected that total credit in Khanh Hoa will be increased to 70,000 - 100,000 billion VND in the coming years to meet the development needs of the locality," Vietcombank leaders shared specific information.

Mr. Minh

Source: https://baochinhphu.vn/giai-phap-huy-dong-von-va-dong-luc-moi-cho-khanh-hoa-102250725153834388.htm