Having fewer regulations for personal loans under 100 million VND (3,974 USD) doesn't mean the approval process will be easier, said policymakers and industry experts.

Domestic construction companies will continue to face difficulties in the second quarter of this year with capital shortage top of their problems, a report has revealed.

A new regulation on reducing the loan limit under the amended Law on Credit Institutions will adversely affect capital supply for enterprises so commercial banks should cooperate in providing syndicated loans for businesses, experts said.

Outstanding loans to the real estate sector in the first half of 2023 surged by 17.4%, exceeding the 10.7% growth rate of the whole of 2022, according to data from the State Bank of Vietnam (SBV).

The State Bank of Vietnam (SBV) and the banking system always create favourable conditions to support real estate businesses and the property market to develop strongly and sustainably, said Pham Chi Quang, Director of the SBV’s Monetary Policy Department.

Property developers in Vietnam face a steep path to long-term growth, with various hurdles awaiting them in the next 12 months, including challenges related to funding access and an evolving regulatory landscape.

Banks are forecast to have a credit expansion at the end of the third quarter of 2022, according to Saigon Securities Incorporation.

The real estate market is witnessing a boom in land plots for sale in many provinces as new projects are rolled out in large numbers.

A series of bank loans are helping Kho Mu ethnic minority people in Xop Chao village in the central province of Nghe An, to escape poverty.

Many businesses suggested more detailed policies should be issued to help them access bank loans as there remain difficulties in lending.

The State Bank of Vietnam (SBV) is consulting on a draft circular for incentive policies to support firms with access to bank loans to overcome difficulties in the COVID-19 pandemic.

Participants at a May 7 workshop in Hanoi recommended that Vietnamese businesses diversify capital sources funding their activities in the new context instead of being over-reliant on the banking system.

The Jakarta Manpower, Transmigration and Energy Agency said on April 6 that a total of 162,416 workers in Jakarta, the capital of Indonesia, have been laid off and forced to take unpaid leave due to COVID-19 pandemic.

– Minister of Industry and Trade Tran Tuan Anh has urged concerned agencies to better the forecast work, thus putting forth suitable solutions to minimise the impact of the COVID-19 pandemic.

Vietnam’s credit growth is slowing and can fall behind the central bank’s target of 14 percent for 2019, causing concerns that it could make it difficult for businesses to access bank loans during the remaining months of the year.

Domestic investors find it hard to carry out the North-South expressway project, and they are waiting for the Government and the State Bank of Vietnam to remove capital bottlenecks.

The State Bank of Vietnam (SBV) has warned local commercial banks to tighten control of loans that use savings books as collateral to ensure the safety of the banking system.

Bond issuance is becoming a popular channel for firms to raise capital for its efficiency and convenience.

The mechanical engineering industry needs supportive policies from the Government to enhance its competitiveness during the fourth industrial revolution, officials and industry experts have said.

Despite credit growth among Vietnamese credit institutions remaining low this year, experts are not concerned about the slowdown, saying it was a good sign for the economy.