According to a report from the State Bank of Vietnam (SBV), by the end of the first quarter of 2025, credit growth reached 3.93%, 2.5 times higher than the 1.42% recorded in the same period of the previous year. This is a clear indication of the effectiveness of the low interest rate policy in stimulating borrowing demand from businesses, organizations, and individual business households.
Governor of the State Bank of Vietnam, Nguyen Thi Hong, affirmed: “By the end of the first quarter of 2025, the new deposit interest rate level will remain almost unchanged, increasing by only 0.08%, while the lending interest rate level will continue to decrease by 0.4% compared to the end of 2024, showing the efforts of the banking system in supporting the economy .” The policy of maintaining low interest rates has played and continues to play an important role in helping businesses access loans more easily, thereby promoting production and export growth.
Agribank staff advise customers on preferential loan packages.
Since the beginning of March, deposit interest rates have continued their downward trend, especially for short-term maturities. Specifically, for the 3-month term, Agribank adjusted its rate down to 2.4%/year, while VPBank also lowered it to 3.8%/year. Notably, the downward trend in interest rates is not limited to short-term maturities but has also spread to medium and long-term maturities. For the 6-month term, BVBank adjusted its rate down by 0.1 percentage point to 5.1%/year; OCB and Eximbank both brought their rates down to 5%/year. At the beginning of April, VPBank further reduced its rate by 0.1 percentage point, bringing the rate for this term down to 4.7%/year. The downward trend is even more pronounced for the 12-month term, one of the most popular deposit terms. VPBank has made two consecutive interest rate cuts, totaling 0.2 percentage points, bringing the rate down to 5.2% per year. Other banks have also followed suit, such as BVBank reducing its rate to 5.55% per year, OCB to 5.1% per year, and Eximbank to 5.2% per year. For longer terms of 24 months, the downward trend continues. VPBank reduced its rate twice consecutively, currently at 5.4% per year; OCB also adjusted its rate down to 5.6% per year. These adjustments demonstrate the banks' efforts to flexibly adjust interest rates to boost credit, while also facilitating easier access to cheaper capital for businesses and individuals – a crucial factor in supporting the economy during its recovery and sustainable development phase.
Mr. Le Quan Thuong, Director of Vietnam Prosperity Commercial Bank (VPBank) Ca Mau Branch, said: “Maintaining low interest rates is the right decision at this time. The bank clearly sees the positive effects of this policy, as the demand for loans from business households and enterprises in the area has increased significantly. Although the bank's operating costs still need to be covered, with low interest rates, the bank can create opportunities for customers to access affordable capital. At the same time, this is also an opportunity for businesses, especially small and medium-sized enterprises, to develop more strongly during the economic recovery period.”
One of the biggest beneficiaries of low interest rates is small and medium-sized enterprises (SMEs), which often struggle to access loans. Low interest rates reduce capital costs for businesses, especially in the context of challenging production and consumption. Many businesses have taken advantage of this opportunity to invest in technology, enhance competitiveness, and expand production. This policy not only helps businesses overcome difficulties but also contributes to job creation and promotes local economic growth.
Mr. Dang Minh Dang, Director of Minh Dang Packaging Co., Ltd. (Ward 9, Ca Mau City), said: “Low interest rates in recent times have really helped businesses, especially as the company is expanding production and investing in automated packaging production lines for the seafood industry. Preferential interest rates from banks make it easier for businesses to access loans to invest in new technologies, improve labor productivity, and reduce production costs. Reducing lending interest rates not only eases the financial burden but also helps us implement long-term projects and maintain competitiveness in the market.”
Short-term lending interest rates at banks for priority sectors continue to remain low, at 3.9% per year. This is a move by the State Bank of Vietnam to promote key economic sectors that can generate significant long-term economic benefits, such as agriculture, food processing, exports, startups, and innovative businesses. The application of these preferential interest rates has helped small and medium-sized enterprises (SMEs) easily access loans, thereby promoting the development of strategic economic sectors.
In the context of an increasingly integrated economy and fierce competition, reducing lending interest rates helps businesses not only overcome difficulties in raising capital but also creates opportunities to increase production capacity and expand product markets.
Accordingly, one of the issues that banks and regulatory agencies need to pay special attention to when maintaining low interest rates is the pressure on exchange rates and inflation. If the exchange rate rises sharply or inflation gets out of control, maintaining low interest rates could lead to instability in the economy. According to forecasts from the Department of Forecasting, Statistics - Monetary and Financial Stability, State Bank of Vietnam, if the exchange rate and inflation rise sharply (above 4%), maintaining low interest rates will become a challenge, and deposit interest rates may increase by 1-2%, while lending interest rates will increase slightly and more slowly than deposit interest rates (0.5-1%). However, in the short term, lending interest rates are projected to continue to decrease slightly by 0.03-0.08 percentage points in the second quarter of 2025 and throughout 2025. This indicates that low interest rate policies will continue to play a crucial role in promoting economic growth, while also making it easier for individuals and businesses to access capital.
To ensure the sustainability of the low interest rate policy, the State Bank of Vietnam not only applies interest rate cuts but also closely coordinates with other monetary tools such as foreign exchange trading, open market operations, and flexible exchange rate management. At the same time, coordination between monetary and fiscal policies is also a key factor in ensuring macroeconomic stability and creating a foundation for long-term growth.
Viet My
Source: https://baocamau.vn/don-bay-thuc-day-tang-truong-tin-dung-a38965.html
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