The Governor of the State Bank of Vietnam, Pham Duc Anh, has highlighted the importance of diversifying funding sources for large-scale projects, stating that they should not solely depend on bank capital. During a conference focused on unlocking financial resources for economic growth in Hanoi for the period of 2026-2030, he stressed that while bank credit is crucial, it should not be the only source of funding for development needs.

According to Governor Anh, large projects with long lifecycles require a balanced structure of equity, credit, public investment, public-private partnerships (PPP), and other legitimate resources. He believes that combining multiple funding sources enhances the sustainability of projects and reduces pressure on the banking system.

For businesses, access to capital is also contingent on management capabilities, financial transparency, equity levels, and cash flow quality. He urged local authorities and enterprises to continue diversifying their financial resources for the medium and long term, utilizing tools from the capital market, bonds, green finance, and official development assistance (ODA) to lessen reliance on a single funding channel.

“The more legally complete a project is, with clear timelines and financial plans, the easier it is for credit institutions to assess and make swift funding decisions,” the Governor noted.

Recently, regulatory bodies have proposed several policies to expand the lending capacity of banks for large projects, including raising the loan limit to 52% of equity for certain projects in Hanoi and excluding loans for specific projects from annual credit growth targets. As of August 28, total credit in the banking system reached approximately 20.5 quadrillion VND, marking a 10.24% increase since the end of 2025, with about 77.3% of the credit serving the production and business sectors.

In Hanoi, there are currently 165 credit institutions with over 2,000 transaction points, accounting for more than 37% of total capital mobilization and around 31% of total loans in the economy. In the first eight months of the year, credit in the area increased by 13.05%, surpassing the overall growth rate of the banking system.

As of the end of last year, the State Bank leadership had reported multiple times about high credit growth rates. By the end of 2025, the credit-to-GDP ratio in Vietnam is projected to reach 146%, the highest among low-middle-income countries.

To facilitate capital flow, the Governor called for coordinated efforts among regulatory agencies, local governments, banks, and businesses. He instructed the State Bank’s Regional Branch 1 to closely monitor capital mobilization, credit growth, interest rates, bad debts, and capital absorption capabilities in the area. This agency also needs to collaborate with Hanoi to assess the capital needs of important programs, projects, and works, ensuring clear classification of issues related to credit and other sectors to avoid enterprises having to navigate multiple channels.