Vietnam’s Private Enterprises Have Yet to Begin a New Investment Cycle in Full
Vietnam’s macroeconomic outlook has improved, but private investment has yet to follow clearly. A review of listed companies’ financial reports by Manulife Investment Việt Nam found that asset growth has not been matched by similar growth in capital expenditure. Experts cite rising financing costs as one obstacle to further investment.
Vietnamese private enterprises have yet to increase new investment significantly. At the Vietnam Investment Forum 2027, Trịnh Quỳnh Giao, CEO of CTCP Quản lý quỹ PVI, said a new growth cycle was beginning to emerge, but its benefits were reaching the private sector unevenly, particularly small and medium-sized enterprises.
Nguyễn Đức Hải, Senior Investment Director at Công ty Quản lý quỹ Manulife Investment Việt Nam, said that although the macroeconomy had changed noticeably, it was still too early to conclude that a new growth cycle had taken shape. After reviewing the financial reports of several large listed companies for the first nine months of 2026, the company found that their total assets had grown while capital expenditure had risen only modestly. Excluding growth attributable to Vingroup, investment growth among the remaining small and medium-sized enterprises was also low.
Nguyễn Đức Hải, Senior Investment Director at Công ty Quản lý quỹ Manulife Investment Việt Nam.（VietVance）
Nguyễn Đức Hải said public investment and fiscal policy had provided an initial boost, but it was not yet clear whether public-sector funding would spur private enterprises to invest more. Financing costs were another obstacle: long-term government bond yields had risen by about 130 basis points, and companies also faced a risk premium of more than 300 basis points.
He said that about a year and a half ago, some companies could issue bonds at interest rates of around 8.5% to 8.7%. Today, the same company might have to accept a rate of 10.5% to 11%, or even 12%, depending on its financial position and the urgency of its project. Higher financing costs mean projects need higher expected returns, which particularly affects decisions by small and medium-sized enterprises to increase capital expenditure. He said other financing channels also needed to develop to support private-sector investment.
Source: VietVance
