Vietnamese Businesses Face Debt Crisis Amid Tightening Liquidity

Vietnamese companies across sectors like agriculture, transport, and steel are struggling with high debt and liquidity shortages, while banks face pressure that has stalled the downward trend of deposit interest rates.

Key points

• Lộc Trời Group is undergoing debt restructuring with banks after previously facing insolvency issues.
• Thép Pomina reported total liabilities exceeding 11,000 billion VND with negative equity by the end of the first quarter of 2026.
• Several commercial banks, including OCB, have raised online deposit rates to address liquidity constraints.
• The State Bank of Vietnam notes that credit growth is currently outpacing the system's ability to mobilize capital.
• The corporate bond market is being promoted as a vital funding channel to meet the nation's 38.5 million billion VND investment requirement for 2026-2030.

Why it matters

The intersection of corporate debt distress and banking liquidity pressure poses a significant challenge to Vietnam's economic growth targets and financial stability.