Politics · Vietnam Bureau
Vietnam's central bank orders lenders to cut deposit rates by 0.5%
The State Bank of Vietnam has directed commercial banks to reduce listed deposit rates as part of a broader effort to lower borrowing costs and stimulate economic activity. The directive also requires banks to slash lending rates for priority sectors by up to 2 percentage points.
LSN Vietnam ·
Vietnam's central bank has instructed credit institutions to cut deposit rates by 0.5 percentage points annually for tenors of six months or longer, according to an October directive aimed at easing financial conditions across the economy. The State Bank of Vietnam also required banks to reduce rates on newly mobilised deposits by the same margin, while simultaneously lowering lending rates by 1.5 to 2 percentage points per year for production, business activities and priority sectors.
The directive reflects a concerted effort by monetary authorities to mobilise available resources, trim operating expenses and encourage profit-sharing among lenders. Officials have emphasized that these measures are designed to support economic growth while maintaining macroeconomic stability. Prime Minister statements indicate that monetary policy adjustments must align with Vietnam's target for double-digit economic expansion.
Government officials have signaled that flexible price management and coordinated management of exchange rates, interest rates and credit are essential to achieving growth objectives. The deputy prime minister has highlighted the importance of flexible pricing mechanisms in supporting broader economic development, while authorities maintain focus on balancing stimulus measures with financial system stability.