Thirty Vietnamese Banks Reduce Deposit Interest Rates

Vietnamese banks are collectively lowering interest rates to support national economic growth, according to the State Bank of Vietnam. Phung Thi Binh, Deputy General Director of Agribank, stated the bank has accepted lower profit margins to stabilize interest rate levels. This move follows guidance from the State Bank of Vietnam to address the gap between mobilization and lending rates. The bank noted that mobilization trends for the first three months of the year were anticipated. The move requires caution due to inflationary pressures caused by rising geopolitical tensions. The source noted that government and ministerial solutions are being implemented to address these challenges. Vietnamese banks are implementing preferential loan packages for specific sectors to support a double-digit growth target. Monetary policy will be managed proactively and flexibly in coordination with fiscal policy to stabilize the macroeconomy. Credit growth will be directed toward production and business sectors. The adjustments range from 0.05% to 1.01% and primarily affect terms of six months or longer.