Vietnam’s outstanding credit exceeds 20.75 million billion VND as firms struggle
Vietnam’s banking system recorded an outstanding credit volume exceeding 20.75 million billion Vietnamese dong as of September 30, marking an 11.59 percent increase from the end of 2025, according to system statistics.
Tourism and Manufacturing Sectors Face Capital Rationing
Bank loans remain the primary operational lifeline for Vietnamese enterprises as non-bank capital channels like corporate bonds and equity markets remain underdeveloped. However, key economic sectors with high spillover effects are struggling to secure necessary funding. Herr Nguyen Quoc Ky, vice president of the Ho Chi Minh City Business Association (HUBA) and chairman of the board of directors of Vietravel Tourism Group, noted that small accommodation facilities, family businesses, and homestay models are largely locked out of current preferential credit programs.
The capital squeeze forces many enterprises to scale back operations significantly. Frau Lam Thuy Ai, chairwoman of the supervisory board at Mebi Group and the Mekong Business Club in Ho Chi Minh City, reported that member companies receive only 50 to 60 percent of their committed capital. This funding gap leaves projects unfinished and stunts market recovery. Mebi Group itself had to curtail investments and halt retail chain expansion to manage interest cost pressures and strict credit limits.
Frau Lam Thuy Ai of Mebi Group reported that many members must restrict their business activities due to tight funds, with some units receiving only 50 to 60 percent of their promised capital.
Beyond liquidity constraints, manufacturers contend with a broad decline in market purchasing power as consumers pull back spending. Rising input costs collide directly with weak consumer demand, placing producers under intense margin pressure.
Stakeholders Urge Credit Priority for Core Economic Sectors
With corporate bond and equity markets remaining limited options for small and medium-sized enterprises, businesses rely almost exclusively on commercial banks. This creates an over-dependence on bank credit while interest rates climb, penalizing companies attempting to fund expansion. Economic stakeholders argue that capital flows must prioritize core sectors like manufacturing, industry, agriculture, and social housing rather than concentrating excessively on multi-billion dong mega-projects.
Addressing these structural lending hurdles on October 13 at the seminar on credit risk sharing and mitigation mechanisms, Dr. Dao Minh Tu, vice president and secretary-general of the Vietnam Banks Association (VNBA) and former deputy governor of the State Bank of Vietnam (SBV), outlined potential reforms. He stated that exploring new credit access methods, including risk-sharing limits and credit guarantees, offers a viable path to expand lending capacity safely.
These financial instruments are designed to give commercial banks a framework to reach clients who previously struggled with collateral requirements, credit history verification, or financial capability proofs. A proper risk-sharing mechanism allows participating parties to jointly absorb a portion of credit risk by agreement. Meanwhile, partial credit guarantees mitigate losses for lending institutions when covered loans encounter default risks. If properly structured, such mechanisms can mobilize additional resources from the private sector, improve enterprise capital access, and direct funds toward sectors with genuine economic demand.