State Bank requires continued reduction of loan interest rates, close supervision of interest rate disclosure

On August 4, 2025, the State Bank of Vietnam (SBV) held a meeting with the credit institution system to instruct credit institutions and foreign bank branches to stabilize deposit interest rates and reduce lending interest rates according to the direction of the Government and the Prime Minister .

Accordingly, the SBV requires credit institutions to thoroughly implement the direction of the Government, the Prime Minister and the SBV to stabilize deposit interest rates; continue to reduce operating costs, promote digital transformation, and be willing to share part of profits to reduce lending interest rates to support people and businesses in accessing bank credit capital, promoting economic development. Safe and effective credit growth, directing credit to production and business sectors, priority sectors and growth drivers; strictly control credit for potentially risky sectors, ensuring safety and efficiency.

The State Bank of Vietnam said it will continue to closely monitor developments in deposit and lending interest rates, and the publication of lending interest rates on the websites of credit institutions; strengthen inspection, examination, and supervision of the implementation of policies and directions of the Government , the Prime Minister, and the State Bank of Vietnam on deposit and lending interest rates. In its operations, the State Bank of Vietnam will continue to closely follow developments in the domestic and international markets, be ready to support liquidity to create conditions for credit institutions to provide credit to the economy, and promptly have appropriate monetary policy solutions.

The Government has adjusted this year's GDP growth target to 8.3 - 8.5%. To achieve this target, monetary policy plays a particularly important role, especially in the context of Vietnam's economy being heavily dependent on credit.

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha.

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said that in the first half of this year, GDP increased by 7.52%, the highest growth rate in the first 6 months of the 2021-2025 period. Inflation was controlled, with an average of 3.27% in the first 6 months of 2025, in line with the National Assembly's target. The money and foreign exchange markets were stable. Credit growth was positive from the beginning of the year, improving compared to the same period in 2024. By July 29, 2025, credit in the whole system increased by 9.8% compared to the end of 2024, up 19.75% over the same period, both of which are positive growth rates compared to recent years.

Deposit interest rates continue to be relatively stable, lending interest rates continue to decrease compared to the end of 2024; credit institutions have published lending interest rate information on the bank's website to provide more information for customers to refer to when accessing loans.

The Deputy Governor emphasized that the interest rate developments have also been of great concern and have been closely directed by the Prime Minister. Recently, the Prime Minister assigned the SBV to continue to closely monitor the stabilization of deposit interest rates and the reduction of lending interest rates of credit institutions, thereby having appropriate solutions. On that basis, the SBV organized a meeting with credit institutions to continue to thoroughly grasp and request credit institutions to seriously implement the instructions of all levels on stabilizing input interest rates, striving to reduce lending interest rates, contributing to supporting economic recovery and development.

Mr. Pham Chi Quang, Director of the Monetary Policy Department, added that recently, some commercial banks have increased interest rates, and the State Bank has promptly conducted inspections to grasp the situation. In general, commercial banks have closely followed the direction of the State Bank. Currently, the average new deposit interest rate is 4.18%/year, basically stable compared to 2024. The average lending interest rate has decreased to 6.53%/year, a decrease of 0.4 percentage points compared to the end of 2024.

Regarding credit, on July 31, the State Bank of Vietnam announced an increase in credit growth targets for credit institutions; directed to boost credit into production, business and priority sectors; strictly control credit into risky sectors, including real estate. At the same time, credit institutions created conditions for people and businesses to access loans more easily with simplified procedures.

According to UOB Bank research experts, the State Bank will temporarily not adjust VND policy interest rates in the short term but will continue to monitor domestic macroeconomic developments, USD interest rate trends and impacts from the new tariff policy effective from August 1.

However, the research team also believes that the SBV will quickly adjust the VND interest rate down by about 0.5% if the USD interest rate is cut at the September Fed meeting and the USD interest rate trend is more obvious in the fourth quarter of 2025 and the first quarter of 2026.

Source: https://baodautu.vn/ngan-hang-nha-nuoc-yeu-cau-tiep-tuc-giam-lai-vay-giam-sat-chat-viec-cong-khai-lai-suat-d348877.html