 | Instead of “squeezing”, it is necessary to “direct” the capital flow into real estate |
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| Delegates at the talk show |
Dr. Tran Du Lich compares the amount of money in the economy to a lake full of water, which means that the economy is not short of money. But businesses are like dry fields, lacking water.
The reason is that the channels leading from the reservoir to the fields are blocked. This means there is no shortage of money but the business is still short of capital.
Recently, the State Bank has officially opened the credit room for banks that do not race in interest rates, do not increase lending rates, and are allowed to increase by 1.5%-2% of total outstanding loans.
Besides, if the team dealing with bottlenecks of the real estate market can remove the administrative procedures of the projects, it will also create the next capital channel.
Dr. Tran Du Lich also said that it is necessary to continue implementing support packages in Resolution 11 of the Government on the mechanism of 2% interest rate compensation and who can borrow. At the same time, there is an overall measure to coordinate both monetary and fiscal policy. In particular, it is necessary to amend Decree 65 on the issuance of corporate bonds as soon as possible, to consider corporate bonds as a very important channel for medium-term capital sources for businesses, and at the same time to reduce the medium-term capital burden for commercial banks.
“If these solutions are implemented synchronously and gradually, the capital will flow into the fields of economy. I believe, from now on, there will be more capital flowing into the fields,” said Dr. Tran Du Lich.
Mr. Truong Tien Dung, Standing Vice Chairman of Ho Chi Minh City Food Association, said that after the difficulties of the Covid-19 pandemic in 2021, businesses continue to face inflation in many countries, large expenditures and expenses. Input costs are all high in terms of raw materials, auxiliary materials, bags, transportation fees, and wages.
In addition, enterprises also face a shortage of labor, many production lines are broken, it is difficult to recruit new workers and have to spend more on training costs while labor productivity decreases.
These factors cause the product cost to increase. In addition, the rising exchange rate greatly affects the cost of importing raw materials and supplies. Therefore, food businesses face many difficulties to supply food to the market.
The Tet holiday is approaching, food businesses are required to ensure the supply of goods to serve the market. Accordingly, businesses expect the supply of goods to increase by 15-20% compared to the same period last year and keep prices stable, maintain quality, promotions and support will be issued by distributors to sell products.
That fact shows that businesses are in dire need of capital.
“The Prime Minister has directed the State Bank to quickly supply capital to the economy, which is a good sign. However, there is a delay from policy to practice. Enterprises want to be able to access capital more easily to overcome difficulties soon,” Mr. Dung emphasized.
Participating in the seminar, Dr. Pham Chi Quang, Director of the Monetary Policy Department at the State Bank of Vietnam, said that the source of capital for the economy is not only bank capital, but also bonds and stocks. The banking industry cannot always worry about medium and long-term capital for businesses because banks are also businesses.
While 80% of banks’ capital is short-term capital, the remaining 20% is capital and medium and long-term capital sources. However, the banking industry is providing medium and long-term loans, accounting for over 50%.
According to Dr. Pham Chi Quang, this leads to two big risks. The first is the risk of liquidity and the payment to depositors if the cash flow is not good. The second risk is interest rates. Specifically, short-term interest rates fluctuate continuously, while medium and long-term interest rates are usually adjusted only once a year.
The State Bank of Vietnam has also issued many legal regulations, including the safety ratio, the ratio of using short-term capital for medium- and long-term loans with a 5-year roadmap for banks to adjust their operations in a more sustainable way. For commercial banks to properly perform their functions to provide short-term capital for the economy and provide banking services. The medium and long-term capital channel for the economy must go through the capital market, corporate bond market, stock market, etc.
However, since the beginning of the year, credit is still the largest capital channel for the economy with credit growth of over 12%, equivalent to nearly VND 1.4 quadrillion has been brought into the economy. However, it is still not enough because the needs of businesses are very large.
Therefore, the State Bank on the one hand still loosens the credit room. Accordingly, only about 3 weeks at the end of December for the banking system to disburse VND 300,000 – 400,000 billion. Although the capital needs of businesses and the economy are very large, credit institutions must lend on terms and conditions, and cannot lower the standard. Because the money lent out is not the bank’s money but from the mobilization of the people.