This information was shared by Tran Hung Huy, Chairman of Asia Commercial Bank (ACB), during the "Moving Capital to the Right Destination" discussion session at Bloomberg Businessweek Vietnam on 10/4. The session focused on unlocking and allocating financial resources to serve new growth objectives.

Tran Hung Huy, ACB chairman, speaking at the event. Photo: ACB

Representatives from financial institutions, investment funds, and consumer credit organizations attended the event. Discussions highlighted a clear need to adjust capital structures in the current environment.

Tran Hung Huy noted that Vietnam's credit-to-GDP ratio is currently high, indicating the banking system's substantial role in channeling capital to the economy. However, as capital demand continues to rise, pressure on the financial system will also increase if the capital structure is not diversified in a timely manner.

Speakers at the event. Photo: ACB

According to ACB leadership, the domestic financial and banking system in Vietnam is fully capable of supporting large-scale projects. Nevertheless, for long-term sustainability, the capital structure needs to be more diverse, not solely dependent on bank capital. The financial structure requires a combination of various resources.

He also emphasized the need for deeper development of capital structuring capabilities to align with international standards. From a market perspective, speakers at the discussion agreed that to meet development goals in the coming period, Vietnam will need to mobilize capital through multiple channels simultaneously, with capital markets playing an increasingly important role alongside the banking system.

Despite addressing pressures, the discussions were not pessimistic, instead focusing on the need for adaptation. Given that external factors can rapidly affect capital costs and market expectations, the ability to operate a flexible financial structure becomes a necessary condition for stable growth.

At the organizational level, this trend also reflects a shift in approach among many domestic financial institutions, including ACB. These organizations are not only providing capital through traditional models but also developing more diverse financial solutions tailored to the increasingly complex needs of businesses.

More broadly, the narrative for the upcoming period is not about the scale of capital flows, but about how it is allocated to generate long-term effectiveness. As Tran Hung Huy articulated, growth depends not only on speed but also on a sufficiently solid foundation to sustain and develop over the long term.

(Source: ACB)