This is a statement from Associate Professor Dr. Nguyen Huu Huan, Vice Chairman of the Vietnam International Finance Center in Ho Chi Minh City (VIFC-HCMC), regarding solutions to reduce businesses' dependence on bank credit.
Over the past period, banks have remained the primary channel for mobilizing capital for the Vietnamese economy . However, total outstanding credit has now exceeded 140% of GDP, a threshold that many international organizations warn could pose risks to the financial system. If growth continues to rely primarily on bank credit, the stability of the financial system will be under immense pressure.
Therefore, one of VIFC-HCMC's key missions is to attract capital for domestic and regional businesses, especially in the context of Vietnam's goal of double-digit growth, with the economy's capital needs estimated at 70-80 billion USD per year.
Associate Professor Dr. Nguyen Huu Huan shared insights on capital mobilization channels through international financial centers.
With funding channels from VIFC-HCMC, Vietnam is planning to build an international stock exchange within its financial center. VIFC-HCMC has signed memoranda of understanding (MOU) with two stock exchanges, Nasdaq and London Stock Exchange, for the development of the capital market in the coming period.
The international financial center also allows businesses to issue bonds, especially green bonds and international bonds, creating a legal basis to attract green capital flows and support businesses in implementing green transformation in the future.
Specifically, according to Associate Professor Dr. Nguyen Huu Huan, not only large enterprises, but also small and medium-sized enterprises (SMEs), micro-enterprises, and startups can raise capital through crowdfunding platforms. These platforms are specifically regulated in decrees, allowing businesses to raise up to $700,000 per year. This will be a channel to support SMEs and micro-enterprises in accessing capital for their production and business activities.
Despite being newly launched and still in the operational phase, VIFC-HCMC has continuously made its mark, helping Ho Chi Minh City improve its ranking on the GFCI – an index assessing global financial centers – reaching 84th place in the world , surpassing Bangkok and Jakarta. Ho Chi Minh City is now ranked 3rd among financial centers in Southeast Asia, after Singapore and Kuala Lumpur.
According to Mr. Huan, Ho Chi Minh City will find it difficult to compete directly with Singapore in the short term, but it can certainly create its own advantages thanks to its real-world economic scale, logistics location, high-quality technology workforce, and competitive costs. For example, operating costs in Ho Chi Minh City are currently only about 1/3 to 1/5 of those in Singapore or Hong Kong (China).
Source: https://nld.com.vn/nhung-cach-nao-de-huy-dong-von-qua-trung-tam-tai-chinh-quoc-te-196260517102028708.htm
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