When capital levels change
At some banks in the area, the increase has been quite evident. At HDBank Tuyen Quang, deposit interest rates at times reached 8.5%/year for some terms; online deposits under 1 billion VND were around 7.8%/year. At LPBank, deposit interest rates ranged from 6.2% to 7.2%/year, and MB Bank also announced on its app savings deposit interest rates from 7.0%/year to 7.5%/year. On the surface, the increase in deposit interest rates signals that banks need to attract more capital. But looking deeper, this is a manifestation of a greater pressure: the economy's demand for capital is increasing, while the ability to balance cheap capital sources is no longer as abundant as in previous periods. When input costs rise, output prices are unlikely to remain stable. That is why the rapid increase in capital costs is quickly transmitted to lending interest rates.
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| LPBank's flexible interest rate management contributes to stabilizing capital flows and supporting production and business activities in the area. |
According to inquiries at several commercial banks in the province, interest rates for home loans and real estate loans have risen to 11% to 13% per year, instead of 7% to 10% per year as in 2025. A home loan or consumer loan that was once considered manageable may become a heavy burden for many families this year.
As borrowing costs rise, individuals and businesses will simultaneously adjust their behavior. Businesses will be more cautious with expansion plans; individuals will carefully consider consumer loans; and investors will shift from a profit-seeking mindset to prioritizing capital safety. This is clearly reflected in the credit investment results for the first two months of 2026, which reached VND 79,154 billion, a decrease of 0.13% compared to December 31, 2025.
Pressure is mounting on the construction and manufacturing sectors.
Road Construction Joint Stock Company 232 specializes in road maintenance, repair, and upkeep. A key characteristic of this field is the small scale of projects, short construction times (3 to 6 months), and the use of lump-sum bidding without price adjustment mechanisms throughout the contract period. Therefore, any fluctuations in the prices of raw materials, fuel, and labor after winning the bid are entirely the responsibility of the company. Mr. Nguyen Ngoc Pham, Director of the company, stated that the company is currently constructing approximately 1,000 cubic meters of concrete on National Highway 4C (Dong Van). However, due to the sharp increase in material, fuel, and labor costs, this project alone is projected to incur a loss of approximately 1.7 billion VND. This includes an increase of about 1 billion VND in material costs, 600 million VND in labor costs, and 100 million VND in fuel costs. With the current preferential interest rate of around 7.5% per year, if businesses have to borrow more to cover costs, they will incur additional interest expenses of over 10 million VND per month. The increasing cost pressure, coupled with unchanged winning bid prices, is causing significant difficulties for businesses.
Mr. Tran Quoc Khanh, Director of An Khanh Beautiful House Trading and Development Joint Stock Company, said: The company is currently borrowing 2 billion VND from VietinBank at an interest rate of 8.5% per year. Meanwhile, in 2025, the interest rate on loans will only be around 5.5% to 6% per year. To find additional capital at a lower cost, the company is applying for a loan of 4 billion VND from BIDV at an interest rate of 7.5%.
This highlights a noteworthy reality: Besides borrowing capital for expansion, businesses also need to find a more optimal capital structure to save themselves from cost pressures. For the building materials and interior construction industry, capital needs often span from purchasing inventory, renting warehouses, maintaining personnel, to fulfilling orders. When market demand is slow, capital turnover is prolonged, and rising interest rates directly eat into profits. In other words, businesses not only face pressure to sell their goods, but also to sell quickly enough to prevent capital costs from eroding their efficiency. This is also a common difficulty for many small and medium-sized enterprises in the area.
While businesses are heavily impacted by the "cost of capital," household businesses are affected on both fronts: rising costs coupled with declining purchasing power. Ms. To Thi Ly, owner of Long Ly household business in Minh Xuan ward, shared that her store sells confectionery, cosmetics, and food items – product groups with low profit margins. In the current difficult economic climate, people are tightening their spending, sales are slower, and customer traffic has significantly decreased compared to the same period in 2025. Meanwhile, rising interest rates are increasing the pressure to maintain working capital.
The impact doesn't stop at the business level.
Fluctuating interest rates slow down investment decisions and alter household financing choices. Under rising interest rates, people no longer view loans simply as "borrowing now, paying back gradually," but are forced to carefully consider their long-term repayment capacity.
Ms. Nguyen Thi Phuong, from Binh An residential area, An Tuong ward, said that her family planned to borrow 600 million VND to renovate their house and invest in livestock farming to increase their income. However, after researching and receiving advice from the bank about the interest rate of about 10% to 11% per year, she decided to temporarily postpone the plan.
This represents a significant shift in financial behavior. Previously, many households were willing to borrow to take advantage of low interest rates for investments or lifestyle improvements, but now the general sentiment has shifted to a more cautious approach. People tend to reduce borrowing for non-essential purposes, prioritizing cash holdings, savings, and accumulation.
Changes in interest rates also impact the investment flows of individuals and investors. When deposit interest rates rise, saving becomes more attractive to some people. Meanwhile, other investment channels such as real estate, business ventures, or production expansion are considered more cautiously. This can cause a certain shift in the flow of money in the market, affecting investment and consumption activities in the local economy.
Therefore, stabilizing interest rates aims not only to support borrowers but also to maintain a reasonable flow of money in the economy. When interest rates rise too quickly, consumer credit tends to stagnate, private investment shrinks, and the market becomes more cautious. Conversely, if managed flexibly, capital flows can still be channeled into production and business, instead of being concentrated in risky sectors or falling into a defensive "standstill." This shows that the regulatory role of the management agency and credit institutions in the area is particularly important.
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| An Khanh Beautiful Home Trading and Development Joint Stock Company is adjusting its production and business plans to adapt to fluctuations in interest rates and capital costs. |
Synchronize solutions, stabilize interest rates.
According to Trinh Ngoc Tuan, Deputy Director of the State Bank of Vietnam Region 4: In the context of banking operations in general, and deposit and lending interest rates in particular, being negatively impacted by domestic and international markets, the State Bank of Vietnam Region 4 has directed credit institutions to strictly implement the State Bank of Vietnam's solutions on interest rate management, continue to review and reduce operating costs, strive to stabilize lending interest rates, and create favorable conditions for businesses and individuals to access credit.
Furthermore, credit flows continue to be directed towards production and business sectors, priority areas, especially agriculture, rural areas, small and medium-sized enterprises, and industries with local advantages. Credit institutions in the area are also required to accelerate the implementation of bank-business connection programs, promptly identify difficulties and obstacles faced by customers, and provide appropriate solutions. This contributes to supporting businesses in stabilizing production and business operations, creating conditions for people to access capital for household economic development and improving their living standards.
Besides supporting growth, the State Bank of Vietnam also focuses on controlling credit in sectors with potential risks, improving credit quality, and ensuring the safety of the system. At the same time, it closely monitors market developments to implement appropriate management solutions, contributing to directing capital flows into production and business sectors. In the coming period, the State Bank of Vietnam Region 4 will continue to direct credit institutions to implement comprehensive solutions to stabilize interest rates, improve access to capital for businesses and individuals, thereby contributing to promoting sustainable socio-economic development in the province.
To sustainably stabilize interest rates, we cannot rely solely on banks. The reactions of businesses and individuals also greatly determine the effectiveness of policy management. For businesses, adapting to rising interest rates cannot be achieved simply by complaining. More importantly, they need to improve governance, utilize borrowed capital efficiently, restructure investment plans, and increase resilience. For individuals, the most reasonable response during periods of fluctuating interest rates is to be more cautious with financial leverage, balance income and expenses more realistically, and choose savings and investment channels that suit their capabilities.
The Provincial People's Committee has issued numerous directives to support businesses in accessing credit, coordinating with the banking sector to implement bank-business connection programs, and simultaneously implementing interest rate reduction policies as stipulated by the Government, contributing to stabilizing interest rates and supporting the recovery of production and business.
In a volatile environment, the flexible management of regulatory agencies, the proactive approach of the banking system, and the adaptability of businesses and individuals will determine the effectiveness of interest rate stabilization. This is also a crucial factor in maintaining growth momentum and ensuring the sustainable development of the local economy.
Text and photos: Hai Huong
Enabling businesses to access capital
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| Mr. Nguyen Duc Hanh Director of BIDV Tuyen Quang Branch |
As a key institution in the region, the Vietnam Investment and Development Bank (BIDV) Tuyen Quang Branch identifies supporting businesses in accessing capital as a crucial task to promote local economic development. The branch has implemented a comprehensive range of solutions, focusing on developing and applying credit packages tailored to the specific characteristics of the northern mountainous region, creating favorable conditions for businesses in Tuyen Quang province to access preferential capital.
For eligible customers, the branch has reformed lending procedures, shortening the application processing time to 1-2 working days. Simultaneously, it has developed preferential credit packages with interest rates 0.5-1% lower than the market average, focusing on manufacturing, agriculture, processing industries, and small and medium-sized enterprises.
The branch also collaborates with departments, agencies, and business associations to organize quarterly banking-business networking conferences to listen to and promptly address difficulties.
Strengthening the connection between banks and businesses.
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| Mr. Nguyen Vu Linh Chairman of the Young Entrepreneurs Association |
As the Chairman of the Provincial Young Entrepreneurs Association, I believe that strengthening the connection between banks and businesses is not only an urgent immediate need but also a strategic solution to promote sustainable business development.
In reality, many businesses, especially small and medium-sized enterprises (SMEs) led by young entrepreneurs, still face difficulties in accessing credit. Meanwhile, banks also select customers based on their loan eligibility and creditworthiness. Therefore, establishing an effective and substantive connection mechanism between the two sides is essential. First, it is necessary to maintain regular dialogue and connection between banks and businesses through conferences and thematic forums. This is a channel for both sides to frankly exchange information about their needs, loan conditions, difficulties, and obstacles, thereby enhancing understanding and collaboration. Banks should proactively approach and advise on suitable credit packages; businesses must also ensure financial transparency, improve management capacity, and develop feasible production and business plans to build trust.
In addition, banks need to diversify credit products, implement preferential loan packages, improve processes, simplify procedures, and shorten appraisal times while still ensuring risk control. Promoting the application of digital technology in loan approval and management will help businesses access capital faster and more conveniently.
Removing the capital bottleneck
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| Ms. Pham Thi Minh Hai Deputy Director of Thanh Son Company Limited |
In my opinion, interest rates and bank credit policies have a direct and profound impact on the production and business activities of enterprises. In the context of fluctuating input costs, maintaining reasonable interest rates will help businesses reduce financial pressure and be more proactive in planning for production expansion and investment in machinery and technology. However, in reality, accessing credit still faces some difficulties, especially regarding loan conditions, collateral, and disbursement time. This somewhat affects the ability of businesses to seize market opportunities, especially during peak production periods.
I hope that banks will continue to implement more flexible policies, simplify procedures, and expand credit limits to suit the specific characteristics of each industry. At the same time, maintaining stable and reasonable interest rates will be a crucial factor in helping businesses feel secure in long-term investment, enhance their competitiveness, and contribute positively to local economic development.
Facilitating people's access to preferential interest rate loans.
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| Ms. Ban Thi Thang Village 6, Tan Long Commune |
Currently, there is a significant demand for transportation and ride-hailing services in the commune. Therefore, my family borrowed capital from the policy bank to purchase a vehicle, both for daily use and to provide additional opportunities for family economic development.
My biggest concern is that interest rates need to be reasonable so that borrowers can proactively plan their finances, especially young families like ours. In fact, my family borrowed about 700 million VND over 5 years to buy a car, with an interest rate of around 7.5% per year. Each month, we still have to set aside a portion of our income to repay the debt, creating some pressure on our spending, but with the current interest rate, we can still manage our finances without major disruptions to our lives.
I hope that policy credit programs will continue to be maintained, creating favorable conditions for people to access low-interest capital. When loan conditions are suitable, people will confidently invest in economic development. This will enable many households to build houses, buy cars, invest in livestock farming, develop production, increase income, and stabilize their lives.
Source: https://baotuyenquang.com.vn/kinh-te/thuong-mai-dich-vu/202603/binh-on-lai-suat-ngan-hang-4407f9f/
![[Image] Nguyen Tat Thanh Street is expected to be widened, reducing traffic congestion.](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2026/03/24/1774326200262_ndo_br_3-6869-jpg.webp)
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