Vietnam lending rates fall faster than deposit rates

By Dinh Vu, Minh Hue
Wed, February 21, 2024 | 11:01 am GMT+7

Average lending interest rates in Vietnam tended to fall faster than those on deposits, with respective drops of 0.25% and 0.15% as of January 31 compared to the end of 2023.

Speaking at a Tuesday conference in Hanoi on promoting credit in 2024, State Bank of Vietnam (SBV) Deputy Governor Dao Minh Tu also said that the central bank has synchronously deployed measures right from the beginning of the year to create favorable conditions for institutions to provide credit and for people and businesses to access it.

State Bank of Vietnam (SBV) Deputy Governor Dao Minh Tu speaks at a conference on promoting bank credit in 2024 in Hanoi, February 20, 2024. Photo courtesy of the SBV.

State Bank of Vietnam (SBV) Deputy Governor Dao Minh Tu speaks at a conference on promoting bank credit in 2024 in Hanoi, February 20, 2024. Photo courtesy of the SBV.

Specifically, the central bank issued Directives 01 and 02 and Action Program 83 to implement resolutions and directions of the government and the Prime Minister, he said.

The SBV has continued to review and improve regulations on granting credit to facilitate lending by institutions and to improve access to bank credit including support for customers facing difficulties in obtaining loans, Tu said.

While it has set a credit growth target of about 15%, the goal can be adjusted to suit actual situations and economic development needs, he added.

The SBV also issued Official Dispatch No. 117 dated February 7, 2024, requesting credit institutions to continue implementing instructions of the Prime Minister and the central bank on interest rates. They have also been asked to report on average lending and deposit rates, including differences between them.

On orientations and solutions for regulating credit activities in 2024, the SBV leader stated that it will continue to manage interest rates in accordance with market developments, macroeconomic situation, inflation and monetary policy goals.

“The central bank is encouraging credit institutions to reduce costs, simplify procedures, increase the application of technology and digital transformation in the credit granting process. It is also pushing institutions to further cut lending interest rates and support the economy.”

Credit institutions have been asked to increase credit safely and effectively, focusing on production and business sectors, priority areas and growth drivers; continue to strictly control credit in potentially risky areas; and expand credit for consumption, thus minimizing "black credit".

The SBV will also continue directing credit institutions to drastically implement credit programs and policies, including a VND120 trillion ($4.89 billion) loan program for social and worker housing construction and old apartment building renovation, he said.

Credit institutions should continue to implement action plans devised for the banking sector to implement the national strategy on green growth for the 2021-2030 period, Tu said.

Credit growth of Vietnam’s banking system in January 2024 dropped 0.6% compared to the end of 2023, with some commercial banks seeing a fall of 1.2-2.3%, the SBV reported at the conference.

Comments (0)
  • Read More
Thailand SCG to invest $700 mln more in $5 bln petrochemicals complex in Vietnam

Thailand SCG to invest $700 mln more in $5 bln petrochemicals complex in Vietnam

Thailand’s Siam Cement Group (SCG) will invest $700 million more in the $5.2 billion Long Son Petrochemicals Complex (LSP) in Vietnam’s southern province of Ba Ria-Vung Tau to diversify its production.

Industries - Fri, November 1, 2024 | 10:20 am GMT+7

Vietnam manufacturing activity rebounds, recovering from typhoon Yagi

Vietnam manufacturing activity rebounds, recovering from typhoon Yagi

The Vietnamese manufacturing sector in October started to recover from the effects of September's super typhoon, recording renewed increases in both output and new orders.

Economy - Fri, November 1, 2024 | 8:34 am GMT+7

Vietnam private lender VietBank logs 96% profit growth in 9 months

Vietnam private lender VietBank logs 96% profit growth in 9 months

Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) posted a 96% year-on-year surge in pre-tax profit in the first nine months of 2024 to reach VND820.4 billion ($32.46 million), or 78% of the year's target.

Banking - Fri, November 1, 2024 | 7:45 am GMT+7

Maersk opens its first bonded warehouse in Vietnam

Maersk opens its first bonded warehouse in Vietnam

Denmark's integrated transport and logistics giant A.P. Moller - Maersk (Maersk) on Thursday opened its first bonded warehouse in Vietnam at SLP Park, Nam Dinh Vu Industrial Park in Hai Phong city.

Industries - Thu, October 31, 2024 | 11:44 pm GMT+7

ABBank incurs $14 mln loss in Q3

ABBank incurs $14 mln loss in Q3

Hanoi-headquartered An Binh Commercial Joint Stock Bank reported a pre-tax loss of VND343.5 billion ($13.59 million) in the third quarter of this year, while some other private Vietnamese banks posted strong profits.

Banking - Thu, October 31, 2024 | 9:29 pm GMT+7

Vietnam’s emergence as regional manufacturing hub a significant logistics opportunity: SuperPort exec

Vietnam’s emergence as regional manufacturing hub a significant logistics opportunity: SuperPort exec

Southeast Asia’s rise as a vital logistics hub with Vietnam positioned as a key manufacturing center presents a significant business opportunity, says Yap Kwong Weng, CEO of Vietnam SuperPort.

Companies - Thu, October 31, 2024 | 9:01 pm GMT+7

Indonesia steps up support for textile industry

Indonesia steps up support for textile industry

Indonesia’s President Prabowo Subianto held a close-door meeting with several ministers on Tuesday to discuss the current situation of Indonesia's textile industry, particularly focusing on textile giant Sri Rejeki Isman (Sritex).

Southeast Asia - Thu, October 31, 2024 | 6:01 pm GMT+7

Thailand speeds up plans to construct six new airports

Thailand speeds up plans to construct six new airports

Thailand’s Transport Ministry is accelerating development and construction projects on six airports with an aim to become the region's transportation hub.

Southeast Asia - Thu, October 31, 2024 | 6:00 pm GMT+7

Thailand develops eco-friendly seaport model

Thailand develops eco-friendly seaport model

Thailand is striving to implement environmental protection and social sustainability solutions in developing the country’s major infrastructure projects, such as the development of Phase 3 of Laem Chabang Port, Thailand's only deep-sea port.

Southeast Asia - Thu, October 31, 2024 | 5:58 pm GMT+7

Indonesia intensifies oil palm cultivation to meet biodiesel demand

Indonesia intensifies oil palm cultivation to meet biodiesel demand

Indonesia is expanding its oil palm cultivation to increase crude palm oil (CPO) production as a raw material for 50% biodiesel (B50), according to the country’s Ministry of Agriculture.

Southeast Asia - Thu, October 31, 2024 | 5:56 pm GMT+7

Malaysia’s first domestic EV model opens for booking

Malaysia’s first domestic EV model opens for booking

The Malaysian multinational automotive company Proton's first electric vehicle (EV), the e.MAS 7, is now open for booking.

Southeast Asia - Thu, October 31, 2024 | 5:54 pm GMT+7

Thailand aims to become emerging leader in AI

Thailand aims to become emerging leader in AI

Thailand is positioning itself as an emerging leader in artificial intelligence (AI) regulation and development, thanks to policies that support an approach that balances technological innovation with ethical considerations and workforce protection.

Southeast Asia - Thu, October 31, 2024 | 5:53 pm GMT+7

Vietnam PM calls for more investment from Qatar’s $475 bln sovereign wealth fund

Vietnam PM calls for more investment from Qatar’s $475 bln sovereign wealth fund

Vietnamese Prime Minister Pham Minh Chinh has called on the Qatar Investment Authority (QIA), Qatar's sovereign wealth fund with total assets amounting to $475 billion as of 2023, to ramp up its investment in Vietnam.

Industries - Thu, October 31, 2024 | 4:43 pm GMT+7

FPT Retail earns $6.5 mln in Q3 profit, to expand FPT Shop chain

FPT Retail earns $6.5 mln in Q3 profit, to expand FPT Shop chain

Vietnamese retail major FPT Retail made a profit after tax of VND165 billion ($6.52 million) in the third quarter of this year, while it incurred a loss of VND13 billion ($514,000) in the same period last year.

Companies - Thu, October 31, 2024 | 3:56 pm GMT+7

Germany’s PNE opens rep office for $4.6 bln offshore wind project in central Vietnam

Germany’s PNE opens rep office for $4.6 bln offshore wind project in central Vietnam

Germany’s PNE AG, a leading developer of renewable energy projects, has shown its determination to proceed with a mega offshore wind power project in central Vietnam by opening a representative office there.

Energy - Thu, October 31, 2024 | 2:43 pm GMT+7

Saudi Arabian energy giant ACWA Power ready to invest $5 bln in Vietnam

Saudi Arabian energy giant ACWA Power ready to invest $5 bln in Vietnam

Saudi Arabian private energy giant ACWA Power stands ready to invest up to $5 billion in Vietnam, a senior executive said Wednesday.

Industries - Thu, October 31, 2024 | 2:39 pm GMT+7