The Ministry of Construction (MOC) supports a proposal on reducing the interest rate by 3-5 percent for social housing buyers and maintaining a subsidy of 1.5-2 percent for developers.

Businesses have confirmed that commercial banks now are lending capital at low interest rates, below 5 percent. However, many businesses don’t intend to borrow money as they lack orders.

The central bank aims to cut lending rates by 1-2 per cent, with a focus on supporting economic recovery and growth drivers, emerging sectors, green transitions, circular economy and social housing.

Deposit interest rates are expected to remain low until the middle of 2024, with a slight increase anticipated thereafter due to higher credit demand, analysts said.

Nearly 20 commercial banks in Vietnam have adjusted deposit rates since the beginning of this month, with most lowering rates.

The State Bank of Vietnam (SBV) will not consider increasing policy interest rates and might extend debt rescheduling policies to support enterprises this year, said SBV Deputy Governor Dao Minh Tu said at a press conference on January 3.

With bond interest rates 1-2 percent higher per annum than 12-month savings interest rates, commercial banks are increasing corporate bond issuance to mobilize more long-term capital.

Deposit interest rates have dropped to a 3-year low, but deposits at banks have reached a record high. Some banks reported an increase of up to 150 percent in payments for deposit interest.

Experts have different forecasts about the time when the State Bank of Vietnam (SBV) will lower its policy interest rate.

Businesses say that commercial banks have not slashed lending interest rates as they have claimed. They still have to borrow money at an interest rate of 11.5 percent.

Vietnamese businesses anticipate some relief as the central bank slashes interest rates, with credit growth expected to accelerate in the second half of 2023.

The United Overseas Bank (UOB) has lowered its 2023 economic growth forecast for Vietnam from 6% to 5.2%, and forecast that Vietnam will continue to cut regulatory interest rates in the third quarter of this year to stimulate its economy.

The State Bank of Vietnam (SBV) has sent a document to credit institutions and branches of foreign banks and SBV in provinces and centrally-run cities regarding the reduction of interest rates.

The State Bank of Vietnam (SBV) has cut regulatory interest rates for four consecutive times since the beginning of this year, in the context that world interest rates continue to rise and stay at a high level.

Experts say the State Bank of Vietnam (SBV) is expected to cut interest rates further to rates seen during the pandemic. However, the effectiveness of the cut is unclear.

The State Bank of Vietnam (SBV) has cut some operating interest rates, but has not intervened in ceiling interest rates of 6-month or longer-term deposits, so there are interest rate gaps among commercial banks.

The State Bank of Vietnam (SBV) has, for the third time this year, decided to ease some operating interest rates in an effort to force down commercial lending interest rates.

Four State-owned commercial joint stock banks in Vietnam have reached a high consensus on the State Bank of Vietnam (SBV)'s policy on reducing interest rates in the coming time.

The State Bank of Vietnam (SBV) announced it would reduce several policy interest rates from April 3, the second cut within one month, the regulator announced on its website March 31 night.