Experts suggest unchaining medium-, long-term capital

Hanoi (VNA) – Experts made proposals to unchain medium- and long-term capital for the private economic sector so as to boost national socio-economic development when attending a seminar held as part of the Vietnam Private Sector Economic Forum in Hanoi on May 2.

Deputy head of the Party Central Committee’s Economic Commission Nguyen Huu Nghia said that at present, the private economic sector enjoys more favourable and fairer access to different sources of capital.

However, the financial and banking system has yet to meet socio-economic development demand. Therefore, private enterprises still face difficulties in approaching medium- and long-term loans, Nghia stated.

According to him, the banking system is currently the most important supplier of capital in the economy.

Hence, to foster rapid and sustainable socio-economic development, it is important to further develop financial markets and create more favourable conditions for private businesses to gain access to loans, he stressed.

Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu underlined the necessity to develop the stock market to reduce the economy’s dependence on bank credit, especially those of the medium and long terms.

Tu also said that the central bank will manage monetary policies in a proactive and flexible manner, increase the credit quality, and facilitate the private sector’s mobilization of capital from the stock market.

Deputy Finance Minister Tran Xuan Ha stated that to continue developing the capital market and unchain medium- and long-term capital, the Finance Ministry will propose the promulgation of the amended Law on Securities and the revised Law on Insurance Business to the National Assembly to complete the legal framework for the market development.

The ministry will step up the restructuring of the stock and insurance markets as well as State-owned enterprises, while prioritising the development of the derivatives market, he added.-VNA