Speaking at the government’s May 4 meeting, officials said interest rates had been managed at a “reasonable” level, but further reductions were needed to ease pressure on firms.
State Bank of Vietnam Governor Pham Duc An said average deposit rates were about 6 per cent, up 0.77 percentage points from the start of the year, while new lending rates stood at around 8.38 per cent.
He said the broader trend remained downward, reflecting efforts by banks to share the burden with businesses. Maintaining deposit rates at a moderate level also helps stabilise the exchange rate by discouraging a shift into US dollar holdings.
State Bank of Vietnam Governor Pham Duc An (Photo: VGP).
The exchange rate has been managed flexibly, trading at around VND 23,449 per USD, up 0.22 per cent since the start of the year, with officials noting improved foreign currency balance conditions.
Nguyen Van Thang acknowledged the central bank’s efforts in directing commercial banks to lower rates but said more “effective and substantive” measures were needed.
He stressed that lending rates must be reduced further, particularly for priority sectors, to provide maximum support for businesses and the wider economy.
The deputy prime minister also called on banks to share more of the burden, urging the central bank to help narrow the gap between deposit and lending rates to reduce borrowing costs.
