The State Bank of Vietnam has set ceiling interest rates, but banks have been slow in making the announcement public.
 |
People who work in agriculture, export industry or small and medium-size businesses can borrow money at 10-13% per year, other businesses can borrow at 12-15% per year. Businesses who want to borrow US dollars will have to pay interest at the rate of 5-7% per year for short-term and 6-8% per year for long term loans.
However, the publicised lending interest rates are for the first period of the term loan only, while customers have not been informed about the ceiling rates. To know the ceiling rates, customers have to rely on good relationships with their banks.
A banker said he had to oversee 200 customers and each of the customers had their own interest rate. "We have a common calculation, but the interest rate will differ. It is based on our results after inspecting the customers assets, credibility and whether they are regular customers or not."
Richard Harris, Head of Retail Banking of Vietnam International Bank (VIB) said lending interest rates play an important role in customer planning. If the bank publicises their rates, customers can estimate their own interest rates and be more proactive in making plans to borrow and repay loans.
Furthermore, it's also easier for the management agencies to monitor the market and make suitable adjustments.
The credit growth rate of Vietnam banking system is 3.36% per year, meaning there is still sufficient capital in the banking system for firms to take out loans. According to the experts, the banks will still not be able to lower deposit rates in the short term but they could lower lending rates.
