New bank loans were priced 0.2 to 0.5 percentage points lower at the end of October than at the start of the month, State Bank of Vietnam Deputy Governor Pham Thanh Ha said at the regular government press briefing on 4 November, VnExpress reports.
Ha said the central bank has asked lenders to cut deposit rates by 0.5 to 1 percentage point a year on new deposits of six months or longer, to make room for cheaper loans. For loans to production, business and priority sectors it has asked for cuts of 1.5 to 2 points.
According to Ha, state-owned and foreign banks have generally lowered posted six-month-plus deposit rates by about 0.5 points, and joint-stock banks by 0.5 to 0.7 points a year. More than 20 banks have also announced preferential credit packages for production, business and priority sectors, with reductions of 0.5 to 2 points.
The push follows a 16 October meeting at which Deputy Prime Minister Nguyen Van Thang told the central bank to find ways to cut lending rates for those sectors by 1.5 to 2 points. Ha said the State Bank will keep directing lenders to lower both deposit and lending rates and will deal with institutions that do not comply.
Credit across the economy stood at more than VND20.8 quadrillion on 26 October, up 11.94 percent from the end of 2025, he said. The cuts quoted are for new loans only, and the briefing did not set out a date by which the full 1.5 to 2 point reduction must be reached.
Sources
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