TPBank Executive: Private Sector Investment Expansion Has Yet to Gain Momentum
A TPBank executive said Vietnam’s public investment and foreign direct investment expanded noticeably in 2026, while private businesses, especially small and medium-sized enterprises, saw little improvement. Bank lending patterns suggest new investment in production and business expansion has yet to become widespread. He said 2027 will test whether growth can be sustained.
At a discussion during the Vietnam Investment Forum 2027, TPBank (Ngân hàng TMCP Tiên Phong) Deputy General Director Nguyễn Việt Anh said Vietnam’s public investment and foreign direct investment expanded noticeably in 2026. Businesses had also begun expanding production and operations, but progress was uneven across sectors. Private businesses, especially small and medium-sized enterprises, had yet to generate a new wave of investment expansion.
A discussion on “The 2027 Macroeconomic Picture: Resources for a New Growth Cycle” at the Vietnam Investment Forum 2027.（VietVance）
He said rising imports of goods, including production inputs, showed that demand for investment and capacity expansion had emerged. But bank lending patterns indicated that such activity did not yet account for a large share of credit. About 70% of outstanding loans currently serve trade and services, more than 20% fund investment in expanding production and operations, and the remainder serves consumption. On that basis, he said new investment had yet to become a widespread trend.
Nguyễn Việt Anh said determining whether Vietnam had entered a sustainable new growth cycle required looking beyond macroeconomic indicators such as gross domestic product. Other factors to watch included business expansion, profits and cash flow, labor productivity, household incomes, and the stability of the financial system and macroeconomy.
TPBank Deputy General Director Nguyễn Việt Anh.（VietVance）
He said public investment was generating cash flow and opportunities for domestic businesses, while trade, services and international tourism were also recovering. Changes in 2026 to organizational structures, administrative procedures, tax administration, invoicing and cash flow oversight could take businesses time to adapt to in the short term. Over the longer term, they could make operations more transparent and help banks assess businesses and provide financing. However, small and medium-sized enterprises saw neither a marked decline nor a significant improvement in their operations that year. Public investment, large businesses and foreign direct investment remained the main drivers of growth. He said 2027 would test whether a new growth cycle would take hold.
Source: VietVance
