Unblocking bank capital flow into Quang Nam economy

State Bank of Vietnam - Region 9 Branch will be the focal point, finding all measures to accompany and support Quang Nam enterprises in accessing credit.

Commercial banks pledge to be ready to lend capital to qualified projects. Photo: TRINH DUNG

Business recommendations

On May 22, 2025, the Quang Nam Business Association (HHDN) sent to the State Bank - Region 9 a petition to address 4 obstacles that make it difficult for businesses to access credit, including: Financial records; collateral; loan restructuring; debt history.

According to HHDN Quang Nam, banks require that the financial statements of enterprises must be profitable, focus on existing tangible assets, are not bold in lending to assets formed in the future or assets formed from borrowed capital, property rights and do not (or very little) lend on credit.

Enterprises cannot meet these regulations when their existing assets have been mostly mortgaged to credit institutions to secure other loans, so they are limited and cannot access new sources of capital.

Credit institutions have begun to promote debt purchase loan packages, but they only apply the old loan term. There is no mechanism to change or restructure loans according to the economic situation in the new period. This leads to businesses not being able to restructure loans, reduce debt repayment pressure to focus capital on developing production and business activities.

The economy is in decline, some businesses have overdue debts, bad debts. Although these debts have been transferred to the standard debt group, the debt history is still recorded in the information of the National Credit Information Center of Vietnam (CIC).

Credit institutions have regulations restricting or not lending to businesses that have incurred overdue debt or bad debt, leading to difficulties in accessing capital for production and business activities.

Real estate projects are facing many difficulties in accessing credit. Photo: TRINH DUNG

In the real estate sector, businesses have requested banks to have specific policies and mechanisms for businesses facing difficulties in lengthy legal procedures due to inspections and audits, which have now been resolved. Credit institutions accept the part of the contract advance guarantee with the collateral ratio below 30% of the advance rate.

In addition, businesses request the State Bank to consider adjusting long-term loan interest rates to a more reasonable level (around 10%/year or less), providing preferential credit programs of around 4%/year for housing projects serving essential needs and social housing. Allowing businesses (industrial, agricultural , etc.) to use goods or products that have completed the production process as collateral when businesses do not have enough collateral.

Mr. Tran Quoc Bao - Chairman of HHDN Quang Nam said, if these recommendations are resolved, it will create conditions for real estate enterprises to access loans at reasonable costs, solve capital problems when implementing many projects at the same time, reduce the financial burden for investment enterprises, help different enterprises to be proactive in purchasing raw materials, paying workers and completing orders. Bank capital will be released into the economy, stimulating local growth.

Community responsibility

According to statistics from the State Bank of Region 9, in the two years 2023 - 2024, the banking industry in Quang Nam will have a low credit growth rate (below 2 digits). As of April 30, 2025, the total outstanding debt of Quang Nam banks reached 119,576 billion VND. Real estate alone is about 15,591 billion VND, accounting for 13.25% of total outstanding debt, construction is about 5,725 billion VND, accounting for 4.86% of total outstanding debt.

Real estate projects will have more opportunities to access bank capital since the meeting and connection between the Quang Nam Business Association and the State Bank of Region 9 on May 22, 2025. Photo: TRINH DUNG

According to Mr. Pham Trong - Deputy Director of State Bank Region 9, the bank will inject about 130-140 trillion VND into the local economy each year through the credit channel.

Quang Nam banking system is ready to provide enough capital for effective investment projects for economic development. Capital demand will not be limited. Credit growth depends on the capital absorption capacity of the economy and enterprises.

Statistics show that capital injected into the local economy is growing, banks have excess money, but there seems to be a paradox that cannot be resolved for many years when businesses always complain about lack of capital and inability to access bank credit.

Many real estate businesses cannot liquidate land or borrow money from banks, causing many projects to "stand still", falling into debt and unable to find a way out.

A commercial bank director said that the banking system cannot develop, cannot survive, and even “go bankrupt” if it mobilizes a lot of capital but cannot lend. They are ready to expand credit, support economic growth, and remove difficulties for production and business.

However, lending standards cannot be lowered because lending capital must go hand in hand with safety and efficiency. When investing capital, banks will have to carefully assess the project's efficiency.

Whether capital is released or not is not entirely decided by the banking sector but depends largely on the macro orientations, competitive strategies of the economy and the coordination of fiscal policies and business support.

At the meeting between the State Bank of Vietnam Region 9 and the Quang Nam Business Association on May 22, 2025 in Da Nang, the State Bank of Vietnam Region 9 Branch affirmed that it will accompany and support businesses in terms of credit conditions, loan package size and loan interest rates.

Director of State Bank Region 9 Le Xuan Anh has requested the Quang Nam Business Association to make a list of businesses facing difficulties and needing credit support. The State Bank will implement a three-party connection mechanism between businesses - banks - government.

Source: https://baoquangnam.vn/khoi-thong-dong-von-ngan-hang-vao-nen-kinh-te-quang-nam-3155545.html