Commercial banks to continue loan rate cuts: central bank

By Tri Duc
Thu, October 12, 2023 | 5:22 pm GMT+7

Vietnamese banks have reduced loan interest rates by 1.5-2 percentage points from end-2022, exceeding the initially-expected decrease of 1.5 percentage points, and the trend is likely to continue.

State Bank of Vietnam Deputy Governor Dao Minh Tu made the statement at a Wednesday meeting between the government and businesspeople on the occasion of the Vietnamese Entrepreneurs' Day (October 13).

Banks will continue cutting loan interest rates as a delayed impact of the central bank’s fourth rate cut in June, he added.

The central bank (SBV) will continue to manage the monetary policy in a flexible manner, aiming to facilitate a favorable and stable market for businesses and trading activities, and ensure that inflation remains below 4.5%, Tu said.

SBV Deputy Governor Dao Minh Tu (right) speaks at a government meeting in Hanoi, October 11, 2023. Photo courtesy of the government's news portal.

SBV Deputy Governor Dao Minh Tu (right) speaks at a government meeting in Hanoi, October 11, 2023. Photo courtesy of the government's news portal.

Such policies also aim to help the economy absorb abundant capital and overcome challenges arising from the global economic slowdown, the deputy governor elaborated.

He also noted other efforts including providing more credit for prioritized sectors, easing loan conditions, implementing special credit programs for some sectors and cooperating with local authorities to solve issues faced by businesses.

Credit growth reached 7% in the year through September 29, slower than 11.05% in the same period of 2022, according to Tu. Outstanding loans reached VND13,000 trillion ($532 billion), while VND600 trillion ($24.55 billion) has been pumped to aid the ailing corporate bond market, he added.

Starting Wednesday, Agribank, VietinBank, and BIDV, three state-controlled banks of the “Big 4” group, reduced their interest rates for 12-month deposit terms and longer to 5.3%. This is the same rate that Vietcombank, the other one in the “Big 4” group, applied a week ago. As a result, all “Big 4” banks in Vietnam have cut their deposit interest rates to 5.3% or below, a record low in recent years.

Data from 33 banks show that the highest deposit interest rates for 12-month terms are given by GPBank with 6.55%, BaoViet Bank with 6.3%, NCB with 6.3%, and CBBBank with 6.2%.

Comments (0)
  • Read More
Japan seeks to implement 15 energy projects worth over $20 bln in Vietnam

Japan seeks to implement 15 energy projects worth over $20 bln in Vietnam

Japan wants to execute 15 projects worth over $20 billion in Vietnam's energy transition field, said Prime Minister Ishiba Shigeru.

Economy - Mon, April 28, 2025 | 11:07 pm GMT+7

Malaysia highlights roles of ASEAN, BRICS in regional cooperation

Malaysia highlights roles of ASEAN, BRICS in regional cooperation

Malaysian Foreign Minister Mohamad Hasan is scheduled to deliver a speech at a dedicated session themed “The Role of the Global South in Reinforcing Multilateralism,” held as part of the BRICS Ministers of Foreign Affairs Meeting in Rio de Janeiro, Brazil, from April 28-29.

Southeast Asia - Mon, April 28, 2025 | 10:10 pm GMT+7

Singapore negotiates for US concessions on pharmaceuticals, chips

Singapore negotiates for US concessions on pharmaceuticals, chips

Singapore is negotiating concessions for pharmaceutical exports to the U.S. while ensuring it still has access to high-end AI chips from the American market, said Singaporean Trade and Deputy Prime Minister Gan Kim Yong.

Southeast Asia - Mon, April 28, 2025 | 10:03 pm GMT+7

Vietnam’s leading IP builder Idico applies for major bourse listing, targets $100 mln pre-tax profit

Vietnam’s leading IP builder Idico applies for major bourse listing, targets $100 mln pre-tax profit

Idico Corporation, a major industrial park developer in Vietnam, has applied for listing its shares on the Ho Chi Minh Stock Exchange (HoSE) and kept its 2025 business plan unchanged with a pre-tax profit target of VND2.6 trillion ($100 million).

Companies - Mon, April 28, 2025 | 9:53 pm GMT+7

Property giant Sun Group commences work on $1.35 bln spiritual tourism complex in central Vietnam

Property giant Sun Group commences work on $1.35 bln spiritual tourism complex in central Vietnam

Sun Group, Vietnam's leading real estate developer, on Saturday broke ground on its Am Tien spiritual and historical tourism complex project in the central province of Thanh Hoa.

Real Estate - Mon, April 28, 2025 | 9:30 pm GMT+7

Vietnam's SHB bank records 'fastest growth in customer satisfaction' for 2 straight years

Vietnam's SHB bank records 'fastest growth in customer satisfaction' for 2 straight years

In the Bank Satisfaction Rankings 2025, Saigon-Hanoi Bank (SHB) not only makes it to the top 10 but also stands out as the bank with fastest growth in customer satisfaction for two consecutive years.

Companies - Mon, April 28, 2025 | 4:19 pm GMT+7

India's KCP Limited to inject extra $60 mln into sugar, biomass power plants in south-central Vietnam

India's KCP Limited to inject extra $60 mln into sugar, biomass power plants in south-central Vietnam

Indian-invested KCP Vietnam Industries Limited has proposed raising the capacity of its Son Hoa sugar plant to 15,000 tons of sugarcane per day and deploying the 45 MW second phase of its 75 MW KCP Phu Yen biomass power plant, both in Phu Yen province.

Industries - Mon, April 28, 2025 | 3:35 pm GMT+7

Central Vietnam hub Danang eyes country's 'first urban complex on the sea'

Central Vietnam hub Danang eyes country's 'first urban complex on the sea'

The central city of Danang is studying an urban complex project on Da Nang Bay, with five floating islands - home to an international service, commercial and financial center complex.

Real Estate - Mon, April 28, 2025 | 1:49 pm GMT+7

Private equity firm Creador acquires 13% of Vietnam’s Long Chau pharmacy chain

Private equity firm Creador acquires 13% of Vietnam’s Long Chau pharmacy chain

Creador Sdn. Bhd., a private equity firm headquartered in Malaysia, has acquired a 13% stake in FPT Long Chau Investment JSC, one of Vietnam’s largest pharmacy chains and a subsidiary of retail major FPT Retail.

Companies - Mon, April 28, 2025 | 12:00 pm GMT+7

Major Vietnamese contractor Hoa Binh to raise $133 mln for bank, supplier payments

Major Vietnamese contractor Hoa Binh to raise $133 mln for bank, supplier payments

Hoa Binh Construction Group, one of Vietnam's top contractors, plans a private placement for up to 347 million shares, with an estimated total value of VND3.47 trillion ($133.4 million).

Companies - Mon, April 28, 2025 | 11:51 am GMT+7

Chocolate Alluvia celebrates Vietnam's Reunification Day with 4 HCMC stores to watch the parade

Chocolate Alluvia celebrates Vietnam's Reunification Day with 4 HCMC stores to watch the parade

Xuan Ron Cho Gao Cocoa Co., Ltd., the maker of Alluvia Chocolate from Tien Giang province, is joining the celebration of Vietnam’s Reunification Day - April 30, with four stores favorably positioned around Nguyen Hue and Le Loi walking streets in District 1, Ho Chi Minh City.

Travel - Mon, April 28, 2025 | 8:57 am GMT+7

Two Vietnamese banks to list on stock exchanges in 2025

Two Vietnamese banks to list on stock exchanges in 2025

Vietnamese private lenders VietABank and KienlongBank are set to move their shares from the unlisted public companies market UPCoM to the Ho Chi Minh City or Hanoi stock exchanges in 2025.

Banking - Mon, April 28, 2025 | 8:24 am GMT+7

AI to reshape Malaysia’s economic landscape: expert

AI to reshape Malaysia’s economic landscape: expert

Artificial intelligence (AI) is set to significantly reshape Malaysia’s economic landscape, presenting not only challenges but also groundbreaking opportunities for growth, job creation, and innovation, according to an expert.

Southeast Asia - Sun, April 27, 2025 | 5:35 pm GMT+7

Vietnam's retail giant Mobile World to keep growing even if market stagnates: chairman

Vietnam's retail giant Mobile World to keep growing even if market stagnates: chairman

Mobile World Investment Corporation (MWG), a leading retailer in Vietnam, will continue to grow even if the market stagnates or retreats, said chairman Nguyen Duc Tai.

Companies - Sun, April 27, 2025 | 5:24 pm GMT+7

Japanese PM Ishiba arrives in Hanoi, beginning three-day visit

Japanese PM Ishiba arrives in Hanoi, beginning three-day visit

Japanese Prime Minister Ishiba Shigeru and his spouse, together with a high-level Japanese delegation, arrived in Vietnam on Sunday for a three-day official visit from April 27 to 29.

Economy - Sun, April 27, 2025 | 3:58 pm GMT+7

Thailand plans to inject $15 bln into economy

Thailand plans to inject $15 bln into economy

Thailand's Ministry of Finance aims to inject over THB500 billion ($15 billion) into the economy to boost the country's GDP growth by over 1.8%, focusing on stimulating consumption, investment, and providing soft loans.

Southeast Asia - Sun, April 27, 2025 | 1:54 pm GMT+7