Vietnam's central bank urges further lending rate cuts
Vietnam's banking sector has reduced deposit interest rates by 1-1.2 percentage points and loan interest rates by 0.5-0.65 percentage points in the first four months of this year, but further cuts are needed.
Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV), made the statement at the government's monthly press meeting on Friday.
He elaborated these cuts, including one in the first quarter and another in April, are part of the central bank's policy to aid businesses in line with its flexible monetary policy to tame inflation, stabilize the currency, and harmonize exchange and interest rates.
The central bank has urged banks to further cut interest rates in order to facilitate access to loans and boost credit growth, Tu added.

State Bank of Vietnam Deputy Governor Dao Minh Tu. Photo courtesy of the government portal.
As a result of the interest rate reduction, average deposit interest rates are now 6-6.1%, while loan interest rates stand at 9-9.2%, according to Tu.
"Notably, state-controlled commercial banks have slashed interest rates by 1-1.5 percentage points for deposits and 1.5-2 percentage points for loans on average, the SBV leader said.
Vietcombank, one of the "Big 4", cut loan interest rates by 0.5 percentage points on May 1 until the end of July. Agribank has cut lending rates by 1-1.5 percentage points for packages of VND100 trillion ($4.26 billion) and $500 million from mid-March to end-June.
In February, MBBank announced a promotion of 1 percentage point cut for loan interest rates aimed at businesses with annual revenues below VND100 billion ($4.26 million).
Also at the press meeting, SBV Governor Nguyen Thi Hong said that by April 25, credit growth had reached only 2.75% compared to the end of last year.
The low capital absorption rate was due to low demand for capital from businesses given shrinking orders. Other firms had demand for loans but their poor health after the pandemic made them fail to meet lending conditions. Credit for the real estate sector only grew 3.51% due to legal barriers facing their projects.

State Bank of Vietnam Governor Nguyen Thi Hong. Photo courtesy of the central bank.
Regarding the exchange rate and foreign currency market, Hong highlighted the SBV has purchased $6 billion in the year to date to pump money into the economy, resulting in a stable exchange rate.
To boost economic growth, Hong suggested the country should enhance domestic demand as Vietnam's GDP largely depends on exports while foreign market demand is unlikely to improve anytime soon as a result of continuing tightened global monetary policies.
Another recommendation was that credit growth, a driving force behind the economy, should be harmonious with the target of ensuring safety of the banking system, amid the collapse of some banks in the U.S.
She noted the collapse of Silicon Valley Bank and First Republic Bank was due to their investments in long-term assets that lost value amid higher interest rates.
"The lesson for Vietnam is that the economic growth should not over-rely on credit growth, especially long-term credit. Economic expansion should also be based on public investments and other sources," Hong added.
- Read More
Indonesia to end incentives for imported CBU BEVs in 2026
The Indonesian government has confirmed that it will stop providing incentives for imported completely built-up (CBU) battery electric vehicles (BEVs) from 2026.
Southeast Asia - Tue, September 16, 2025 | 9:44 pm GMT+7
Aquatic sector advised to navigate challenges, secure exports to EU, US
Despite positive production signals with growth in 2025 projected at 4.25%, Vietnam's aquatic sector is facing mounting export pressures, particularly strict technical barriers in major markets such as the EU and the U.S.
Companies - Tue, September 16, 2025 | 9:41 pm GMT+7
Vietnam pledges favorable conditions for UK businesses
Finance Minister Nguyen Van Thang has affirmed Vietnam’s commitment to improving its investment environment and creating favourable conditions for foreign enterprises, including those from the UK.
Companies - Tue, September 16, 2025 | 9:29 pm GMT+7
Lotte Shopping plans to open more shopping malls in Vietnam
South Korean retail giant Lotte Shopping has unveiled plans to open an additional two to three large-scale shopping malls in major Vietnamese cities by 2030, underscoring the country’s growing role in the group’s international expansion strategy.
Companies - Tue, September 16, 2025 | 9:25 pm GMT+7
Vietnam ratifies WTO Agreement on Fisheries Subsidies
Vietnam officially deposited its instrument of ratification of the Agreement on Fisheries Subsidies at the WTO General Council’s special session in Switzerland on Monday.
Companies - Tue, September 16, 2025 | 9:21 pm GMT+7
What makes NobleGo - Vietnam’s first home-bidding livestream platform - so notable?
NobleGo – Vietnam’s pioneering AI-powered livestream real estate bidding platform developed by Sunshine Group – has completed its first 20 livestream sessions.
Real Estate - Tue, September 16, 2025 | 4:53 pm GMT+7
Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026
Japanese-backed Aeonmall Vietnam is ramping up construction on its Aeon Mall Ha Long project in Quang Ninh province, home to Ha Long Bay, with an aim to open it to the public by end-2026.
Industries - Tue, September 16, 2025 | 3:54 pm GMT+7
Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex
A long-stalled automotive manufacturing project by Xuan Kien Auto JSC (Vinaxuki) has been officially terminated by Hanoi authorities, and the reclaimed land in Phuc Thinh commune will be repurposed for a new commercial and service complex.
Industries - Tue, September 16, 2025 | 2:44 pm GMT+7
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout
Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.
Energy - Tue, September 16, 2025 | 1:44 pm GMT+7
Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers
Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.
Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7
Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister
Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.
Economy - Tue, September 16, 2025 | 9:36 am GMT+7
Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry
The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.
Finance - Tue, September 16, 2025 | 8:00 am GMT+7
E-commerce boom a major driver of Vietnam's packaging paper industry growth
Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.
Companies - Mon, September 15, 2025 | 10:20 pm GMT+7
Vietnam needs support from UK in developing international financial center: Deputy PM
Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).
Finance - Mon, September 15, 2025 | 10:12 pm GMT+7
Vietnam enforces 8% capital adequacy ratio for banks from Sept 15
Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.
Banking - Mon, September 15, 2025 | 10:04 pm GMT+7
Tool for wood traceability management debuts in Vietnam
The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.
Companies - Mon, September 15, 2025 | 10:00 pm GMT+7
- Consulting
-
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
-
The ASEAN trade puzzle: Smart moves in a shifting landscape
-
Vietnam’s breakthrough opportunity against world-wide US tariff wave
-
Trump trade mayhem to steepen yield curve and weaken US dollar
-
Navigating tariff shocks: Vietnam’s path forward through diversification
-
Southeast Asia IPO performance in Jan-June