On the afternoon of April 13, at the Conference “40 Years of Reform: The Leading Role of Economic Groups” organized by The Investor Magazine, Mr. Nguyen Quang Thuan, Executive Chairman of FiinGroup and FiinRatings, delivered a presentation on capital mobilization and allocation for Vietnamese economic groups in the new context.

Key highlights from the presentation include:

🔹 To support stronger investment by the private sector in general, and by economic groups in particular, expanding fundraising through the debt capital market, including corporate bonds, will be a decisive factor in financing corporate investment and thereby supporting economic growth.

🔹 Total capital demand is estimated at approximately VND 38.5 quadrillion over the next five years, of which the private sector will need to mobilize around VND 30 quadrillion, equivalent to an average of roughly VND 6 quadrillion per year. Meanwhile, the banking system is targeting credit growth of around 15% in 2026, implying credit supply of approximately VND 2.8 quadrillion, based on estimated changes in outstanding credit balances. Accordingly, the remaining VND 3.2 quadrillion is expected to come from other channels, including FDI (around VND 0.7 quadrillion), equity market fundraising (around VND 0.2 quadrillion, including IPOs). The remaining VND 2.3 quadrillion is expected to come from debt financing channels, including domestic corporate bonds, syndicated loans, and international bonds.

🔹 However, the way growth is financed is equally important and has significant implications for the sustainable development of economic groups. This includes how the banking sector can strengthen its capital base or improve capital buffers to support longer-term lending aligned with project characteristicss; how bond maturities can be extended; and how more fixed-rate mechanisms can be developed instead of the current practice of pricing linked to deposit rate movements. These will be important preconditions for financial system stability and the sustainable development of economic groups.

🔹 Based on an assessment of the financial performance of both private conglomerates and state-owned enterprises, Mr. Thuan also proposed several strategic recommendations to support more efficient capital mobilization and allocation, including:

• Enhancing the bankability of large-scale projects for financing structures such as project finance and PPP bonds, while laying out the groundwork for the establishment of large-scale infrastructure investment funds.
• Further reforming the debt capital market, with a particular focus on corporate bonds, improving the sovereign credit rating, and introducing new capital market instruments.
• The Government could consider establishing national investment funds, as seen in a number of other countries.

Mr. Thuan also emphasized: “Corporates, especially large groups, should not remain merely users of capital, but should become central players in mobilizing and allocating capital for Vietnam’s strategic sectors.”

👉 The full presentation can be accessed here: THIS LINK

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