State Bank of Vietnam creates mechanism to exclude VND 1.7 million billion from credit growth limits

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• Wave of Interest Rate Cuts Gathers Pace, Some Banks Cut Several Times

  Many banks are continuing to cut deposit and lending rates after urgent directives from the Government and the State Bank of Vietnam, and the trend is expected to last through 2026. VPBank will cut lending rates by 1.5% from 26 October for individuals in 6 priority sectors and for SMEs borrowing working capital, and it lowered some online deposit rates by 0.5% from 20 October, with a 10,000 billion VND quota. SACOMBANK has launched a 20,000 billion VND package with 1.5-2% annual rate cuts for individuals, after earlier cutting deposit rates by 0.5% per year for terms of 6 months or more and offering a 40,000 billion VND package with 2% annual cuts for businesses. Vietbank has launched a 3,000 billion VND package with rates at least 1.5% per year lower, valid until 30 June 2027 or until the quota is used up. A plastics company in Ho Chi Minh City said a 2.5 billion VND loan now carries a rate 1.5% per year lower, and an economist said lower rates help businesses free up cash flow.

  CafeF·25/10, 07:35▲ VNINDEXinterest ratesbanksState Bank of Vietnam
• Banks agree to inject 230 trillion VND into businesses and projects: Which names are worth watching?

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• Key Southeast Projects Need 757,000 Billion VND in Loans

  15 key projects in the Southeast region need 757,000 billion VND in loans, and banks have disbursed more than 39,000 billion VND so far. According to Nguyễn Xuân Bắc, an official of the State Bank of Vietnam, lending faces three problems: legal hurdles and delays in land procedures and site clearance; a mismatch between short-term funding and the long construction and capital-recovery periods of large infrastructure projects; and limited enterprise governance and transparency in the data provided for loan appraisal. Outstanding credit in the region reached about 6.8 million billion VND at the end of September, up more than 10.9% from the end of last year and nearly 35% of the national total, while three localities target GRDP growth of 10-10.04% this year. Governor Phạm Đức Ấn urged banks to prioritize major projects such as urban rail and the Cần Giờ bridge, and asked enterprises to be transparent, secure adequate equity and prepare feasible repayment plans.

  VnExpress·23/10, 17:10▲ BID▲ CII▲ CTG▲ HDBcreditbanksState Bank of Vietnam
• Banks cut deposit rates but borrowing costs remain high

  Vietnamese banks have begun cutting deposit rates under a State Bank of Vietnam directive, with over 20 banks reducing rates as of October 22, though lending rates remain high. SBV Governor Phạm Đức Ấn asked banks to cut lending rates by 1.5-2 percentage points a year for production, business and priority sectors, and deposit rates by at least 0.5 percentage points for terms of six months or longer. Banks that fail to comply could face lower credit growth targets, and the central bank will monitor average rates on new transactions in the final months of 2026. As of end-September, average individual lending rates ranged from 7.73 per cent at BIDV to 11.38 per cent at OCB. Expert Nguyễn Đức Độ said high funding costs remain a major obstacle and suggested transparent interest subsidies funded by the state budget.

  vietnamnews.vn·23/10, 10:00▲ VNINDEX▲ ACB▲ BID▲ CTGinterest ratesbanksState Bank of Vietnam
• Savings Interest Rates Have Risen for 11 Consecutive Months

  The average deposit interest rate has risen continuously since October 2025, reaching 8.1% for 6-12 month terms versus 5.5% a year earlier, before climbing more slowly under State Bank of Vietnam guidance. The average lending rate in September was 10.9%, nearly 2 percentage points higher than at the end of last year, while short-term rates for priority sectors remain capped at 4%. Many banks have announced deposit rate cuts of at least 0.5 percentage points, and the streak of increases is likely to end this month, with some analysts expecting rates to stay flat until year-end. The State Bank of Vietnam also asked banks to cut lending rates by 1.5-2 percentage points a year for production, business and priority sectors, and warned that non-compliant institutions could face reviews of their remaining credit quotas.

  VnExpress·23/10, 05:54▼ VNINDEX▼ ACB▼ BID▼ CTGinterest ratessavings accountsbanks
• VDSC: New State Bank of Vietnam directive may push some banks over credit growth limits

  According to VDSC, State Bank of Vietnam Official Dispatch 9608 asks banks to cut listed deposit rates by at least 0.5 percentage points a year for terms of 6 months or longer, and to cut lending rates by 1.5–2 percentage points a year for production and business sectors. Non-compliant banks could face adjusted credit growth targets for the rest of 2026, lower quotas in 2027, or stricter safety ratios. VDSC estimates SHB, TPBank and Techcombank already exceed their 2026 credit growth limits after counting outright L/C purchases. Although at least 19 banks cut deposit rates on October 19–20, VDSC expects lending cuts to exert short-term pressure on net interest margins (NIM), with the impact varying across banks.

  CafeF·22/10, 04:31▼ VNINDEXState Bank of Vietnaminterest ratescredit

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