Banks step up lending push ahead of year-end demand

Banks step up lending push ahead of year-end demand

With year-end borrowing needs on the rise, banks in Vietnam are rolling out measures to boost credit growth, aiming for stronger loan expansion in the closing months of 2025.

Speaking to VIR, Tu Tien Phat, CEO of ACB, revealed that the bank is deploying a comprehensive suite of measures to boost lending. These include launching a $1.6 billion credit package with interest rates lower than the market average, offering flexible financing products such as cash flow-based lending, overdraft facilities, and long-term unsecured loans.

"ACB is also supporting businesses in adopting digital solutions for sales management, invoicing, and payments. At the same time, we're leveraging our ecosystem of nearly 8 million retail customers and 300,000 corporate clients to help businesses expand their market reach," said Phat.

In reality, around 70 per cent of small and medium-sized enterprises (SMEs) struggle to access bank loans due to insufficient collateral or an inability to demonstrate stable cash flows. Only about 30 per cent can obtain unsecured loans or benefit from preferential lending programmes.

Recognising this challenge, ACB has shifted its lending philosophy from a collateral-based approach to one focused on cash flow and operational capacity. The southern lender now offers cash flow-based loans of up to $400,000, overdrafts up to $120,000, and long-term instalment loans with repayment periods of up to 15 years without requiring collateral.

This shift demands that banks closely monitor business operations and implement rigorous risk management practices.

"This should be effective in improving access to capital for dynamic and transparent businesses. To solve the capital supply-demand mismatch, both banks and businesses must change. Banks can’t apply a one-size-fits-all model. ACB has developed a specialised credit assessment framework for SMEs, integrating digital management tools to both provide capital and help firms elevate their operational standards," said Phat.

"On the other hand, businesses must standardise their documentation, ensure financial transparency, and enhance management capabilities. When both sides move closer together, the meeting point will come at the right time, with the right needs," he added.

Similarly, OCB is placing a strong focus on retail and SME lending, including support for early-stage businesses. The bank is prioritising startups that have successfully implemented their ideas, demonstrated viable business models, and generated positive cash flows.

According to OCB CEO Pham Hong Hai, most new ventures do not require large capital. A short-term loan can have a significant impact, enabling them to access credit even without collateral. "Many Vietnamese startups have already undergone rigorous due diligence by investment funds before receiving capital injections – this, in turn, helps banks reduce their own lending risks," said Hai.

OCB provides financing alongside cash flow management, digital banking solutions, and ecosystem connectivity to help young firms grow sustainably.

"We take a segmented approach to retail banking, dividing clients into three groups: affluent, mass affluent, and payroll mass, or salary-based customers. Each segment has its own financial behaviours and needs, and OCB designs tailored product packages to serve them effectively," said Hai.

According to Hai, Vietnam’s credit growth in the first half of 2025 – driven by accelerated public investment and a recovering real estate market – reached nearly 10 per cent across the banking system.

Looking ahead to the second half of the year, Hai expects credit flows to concentrate in the production and business sectors, as well as renewable energy projects. "Many businesses have launched large-scale projects recently, generating positive signals and ensuring sustained credit demand," he said.

MB Securities expects total credit growth this year to reach 17–18 per cent, driven in the final months by faster public investment disbursement, momentum from Resolution No.68-NQ/TW on private sector development, and the State Bank of Vietnam’s plan to lift the credit growth cap.

VIR