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- Outstanding credit as of October 14 tops 20.7 million billion dong; banks agree to cut lending rates after meeting with the State Bank on the morning of October 19
As of October 14, 2026, outstanding credit to the economy reached 20,721,583 billion dong, up 11.44% from the end of last year and 16.73% year-on-year. On the morning of October 19, State Bank of Vietnam (SBV) Governor Phạm Đức Ấn met with chairs and CEOs of commercial banks, and the banks agreed to cut interest rates. Specifically, listed deposit rates for terms of 6 months or more will fall by at least 0.5%/year, while lending rates will drop by 1.5–2%/year, focusing on production, business and priority sectors. The backdrop includes Middle East conflict driving up oil prices, several major central banks raising rates and a stronger US dollar, all of which pressure Vietnam's monetary policy. The SBV also asks banks to channel credit into production and business while tightly controlling lending to risky sectors, including real estate.
- Deputy Prime Minister Calls for 1.5-2% Cut in Lending Rates
Deputy Prime Minister Nguyen Van Thang has asked the State Bank to cut lending rates by 1.5-2% for production, business and priority sectors, and made the Governor directly responsible for implementation. At a meeting on October 16, he said lending rates remain high, raising capital costs and limiting businesses' and people's access to credit, amid pressure on inflation, exchange rates, bad debt and banking risks. According to the State Bank, average lending rates in August reached 10.7%, up 0.2 percentage points from the previous month and about 3 percentage points from a year earlier. Although state-owned banks advertise average rates of about 7.4-7.6%, a VnExpress survey found Big4 banks actually lend at 9-10.5%, and some private banks charge up to 12%. He also asked banks to cut costs, make rates transparent and control credit quality, especially in real estate.
- Floating mortgage rates hit 15% a year as borrowers fret before preferential periods end
Many property loans have shifted from preferential rates of 6.5–9% a year to floating rates of 10–15% a year, raising repayment concerns for borrowers. Ms. Huyền Trang's Techcombank loan rose from a 7.5% fixed rate to 12.2% a year, while Mr. Nguyễn Tú's MSB loan went from 9% to 14.5% a year, and he believes rates may be near the peak of the current cycle. Ms. Ngọc Mai expects her BIDV loan to switch to a floating rate of about 14% from April 2027, when she currently pays over 16 million VND a month on a 1 billion VND loan. Floating rates at many banks are now around 10–12% a year, while VPBank goes up to 15%. As of August 31, 2026, real estate business loans reached 2.59 million billion VND, up 19.59% from the end of 2025, while consumer property loans rose only 1.02%.
- Floating mortgage rates rise: What to do before the preferential period ends?
Many real estate loans have shifted from preferential rates of 6.5-9% per year to floating rates of 10-15% per year, pressuring borrowers, and some experts say rates may be near the peak of the current cycle. Ms. Huyền Trang’s Techcombank loan moved from a fixed 7.5% to a floating 12.2%, while Mr. Nguyễn Tú’s MSB land loan rose from 9% to 14.5%. Ms. Ngọc Mai’s BIDV loan at 6.5% will switch to floating in April 2027, expected at around 14%, and on a 1 billion VND loan she already pays over 16 million VND monthly. Surveyed banks show floating rates commonly at 10-12% per year, with VPBank up to 15%. As of Aug 31, 2026, real estate business credit reached 2.59 million billion VND, up 19.59% from the end of 2025.
- High Rates, Tight Funding: VIS Rating Warns of Weaker Credit for Banks and Businesses
VIS Rating expects rising operating costs and tighter funding to weaken the credit environment for Vietnamese banks and companies over the next 12 months, less favorable than the stable outlook for the first half of 2026. Retail fuel prices rose 19%-52% year on year and CPI rose 4.9%, squeezing debt-servicing cash flows, while lending rates are expected to stay high and credit growth is outpacing deposit mobilization. Residential real estate developers face the greatest risk: nationwide property transactions fell 36% year on year in Q2 2026, and the absorption rate for primary apartments in Hanoi and Ho Chi Minh City dropped to 73% from 95% in 2025. In contrast, infrastructure firms, large domestic consumer companies, and large and state-owned banks are seen as more resilient.
- Vornado, Ken Griffin and Rudin Close Joint Venture, 1.05 Million SF Anchor Lease and $3.3 Billion Construction Loan
Vornado Realty Trust (NYSE: VNO), Ken Griffin and Rudin have closed their 350 Park Avenue joint venture, owned 60% by an affiliate of Griffin, 36% by Vornado and 4% by Rudin. Citadel Enterprise Americas LLC signed a 1.05 million square foot anchor lease, and construction of the 66-story tower is underway. A $3.3 billion construction loan was provided by a group of banks including Wells Fargo, JPMorgan Chase and Bank of America. The 1.9 million square foot tower will make 850,000 SF available to the market in its high-rise. The project will contribute $150 million toward maintenance of St. Patrick's Cathedral and Saint Bartholomew's Church and more than $35 million to the East Midtown Public Realm Improvement Fund.
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Latest news
- Bank Profits Surge
The 9-month 2026 results show many banks continued to grow profits, with some posting record quarterly earnings. VPBank's pre-tax profit reached nearly VND 30,000 billion, up nearly 47%, equal to its full-year 2025 result and about 72.4% of its 2026 plan; Q3 pre-tax profit topped VND 11,000 billion. Techcombank posted VND 28,900 billion (up 23.7%), while LPBank reported VND 10,421 billion (up nearly 9%). SSI forecasts pre-tax profit of its monitored banks to rise 19.5% in 2026 before slowing to 15.4% in 2027, pressured by narrowing net interest margins and rising credit risk provisions. It also expects system-wide credit growth of 16-17% in 2027 and 17.9% for the monitored banks.
- World's Largest Gold Fund Dumps Over 10 Tonnes of Gold as Prices Slide
SPDR Gold Trust, the world's largest gold fund, continued net selling of nearly 12 tonnes of gold in the 22/10 session, bringing total sales over 2 sessions to nearly 15 tonnes and cutting its holdings to about 1,046 tonnes. Spot gold fell more than 2.8% to around USD 4,025 per ounce at the close of 22/10, and briefly dipped below USD 4,000 per ounce in the morning session of 23/10. Tensions in the Middle East pushed crude oil prices higher, raising concerns about inflation and further Fed tightening, and gold has still not attracted sustained safe-haven demand even as US Treasury yields fell. US September CPI rose 0.6% month on month and 3.7% year on year, while PPI rose 1.3% and 6.3%. Markets price about an 84% chance the Fed holds rates steady at its 27-28/10 meeting and a 16% chance of a 25 basis-point increase; September PCE data due on 29/10 is the next key factor to watch.
- Gold Prices Continue to Fall
On the morning of 23/10, domestic gold prices kept falling, with SJC bar prices varying by seller and the premium over world gold widening. Công ty TNHH Vàng bạc đá quý Sài Gòn listed SJC bars at VND 139-142 million per tael (buy-sell), down VND 300,000; Phú Quý was at VND 138-141.8 million, down VND 500,000; and Mi Hồng at VND 140-141.5 million, down VND 800,000. Gold rings also fell by varying amounts, with DOJI at VND 138-142 million and Phú Quý at VND 138-141 million per tael. World gold dropped USD 129 to around USD 3,992 per ounce, equal to about VND 125.3 million per tael, leaving SJC bars about VND 16.7 million per tael above the world price. The State Bank's central rate was set at 25,627 VND/USD, down 5 dong, while Vietcombank quoted 25,660-26,040 VND/USD (buy-sell).
- Company Linked to Billionaire Pham Nhat Vuong Announces Major Good News
VEFAC (ticker VEF), a Vingroup subsidiary, posted Q3 net revenue of nearly VND 77 billion, up 67% year on year, but a gross loss of about VND 27 billion as cost of sales from its exhibition business exceeded revenue. Q3 profit rose mainly thanks to a gross gain of about VND 65 billion from transferring some schools in a project to a partner, while financial income reached over VND 388 billion, mostly from loan and investment income. For the first nine months of 2026, after-tax profit was nearly VND 865 billion, down about 94% from VND 15,418 billion in the same period of 2025, as the prior year included large gains from transferring part of the Vinhomes Global Gate project. As of 30/9/2026, total assets stood at over VND 31,905 billion, up 36% from the start of the year, while total liabilities exceeded VND 24,364 billion, with short-term customer advances rising from VND 411 billion to over VND 8,373 billion.
- Lotte and Phat Dat Officially Break Ground on VND 60,000 Billion Mega Project in Thu Thiem 'Golden Land'
A joint venture between Lotte Group (South Korea) and Phát Đạt (HoSE: PDR) officially broke ground on 23/10 on Lotte Eco Smart City Thu Thiem in the Thu Thiem New Urban Area, HCMC, with total investment of about VND 60,000 billion. The project covers nearly 7.5 ha and will combine Grade A offices, retail, services, accommodation and housing, adjoining the central plaza and central lake of Thu Thiem. Phát Đạt holds 35% of Lotte Properties HCMC, the project developer, and will develop the housing blocks along with two towers (2-1 and 2-3) with about 219,722 m2 of floor area, while Lotte handles block 2-5. Lotte Properties HCMC paid VND 17,569 billion in land-use fees on 31/7/2026, and Phát Đạt completed its VND 7,666 billion payment to take its 35% stake. MB is funding all of Phát Đạt's capital contribution, while VietinBank and BIDV also support the project.
- International Business : Global stocks nosedive as Meta dents AI optimism
Global stocks retreated as tech earnings failed to ease concerns about the AI outlook, with MSCI's All-World index set for its largest daily fall in two weeks, down 0.4 per cent. Meta beat third-quarter revenue expectations, but its plan to issue non-voting stock revived worries about its mounting capital commitments, and a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. Brent crude rose nearly 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia raised supply risks. Investors moved into government bonds, pushing the US 10-year yield down to 5.05%, below France's for the first time in 13 years, while French yields have climbed above 5% amid concerns over social unrest and debt. The France-Germany 10-year spread reached 177.7 basis points, its widest since 2011, while gold fell 1.8% to $4,070 an ounce.
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