Topic: capital

Capital targets completing key infrastructure projects and building synchronous infrastructure by 2030 with a vision to 2045.

Total capital from foreign investors reached $22.46 billion in the first ten months of the year.

The State Bank of Vietnam (SBV) has reported that average growth in green credit in the 2017-2021 period was more than 25 per cent each year. As of June 30, outstanding loans for green projects stood at more than VND474 trillion ($19 billion), up 7.08 per cent year-on-year but accounting for only 4.1 per cent the total in the economy. At the “Green credit, green banking towards sustainable development in Vietnam” workshop held by the SBV in cooperation with relevant units on October 27, a central bank representative pointed out many obstacles in granting green credit, such as a lack of medium and long-term capital and high market risks.

Prime Minister Pham Minh Chinh responded on October 24 to questions from a National Assembly deputy on the disbursement of public investment capital, in particular disbursement of the support package for socio-economic recovery and development. He identified six key solutions to ensure disbursement in programs and projects, especially those that relate to socio-economic recovery and development programs.

Disbursement of public investment capital has seen positive signs but remains tardy. Some VND35 trillion ($1.43 billion) was disbursed in the first nine months of this year, an increase of 16 per cent year-on-year and equal to 46.7 per cent of the 2022 plan assigned by Prime Minister Pham Minh Chinh. He has now requested that ministries, central agencies, and localities implement solutions set out in resolutions from regular government meetings and guiding documents from government leaders on disbursement this year.

Capital demand for green growth is quite large and long-term, so the burden of provision should not be put solely on the shoulders of the banking sector. According to Deputy Governor of the State Bank of Vietnam Pham Thanh Ha, “In the 2021-2030 period, to realize green growth, the government will focus on promoting resources from commercial loans and private investment such as green credit and green corporate bonds.”

Ministry of Planning and Investment releases report detailing investments overseas by Vietnamese companies in the first nine months of the year.

Southern Binh Phuoc province attracted 70 FDI projects last year with total capital of $600 million, bringing its total to 346 FDI projects with more than $3.579 billion in capital. With such achievements, Binh Phuoc has been promoting itself as a “magnet” for FDI. It also continues to boost the development of industrial parks, which not only has a positive effect on changes to its economic structure and resolves job needs, but also grows the local budget.

Hai Phong city has been assigned a public investment capital plan for 2022 of nearly VND13 trillion ($550.4 million) by the Prime Minister. It plans to disburse 70.2 per cent by the end of September, and has committed to disbursing 100 per cent by January 31, 2023.

Though newly-registered FDI is still to recover to pre-pandemic levels, additional capital and capital contributions and share purchases continued to increase in the first nine months of 2022.