Vietnamese Commercial Banks Cut Deposit Rates Following Central Bank Directive to Boost Economic Growth

Commercial banks in Vietnam have reduced listed deposit rates by 0.5 percentage points, with some joint-stock commercial banks cutting them by 0.5-0.7 percentage points, in response to a directive from the State Bank of Vietnam (SBV). This action, announced by SBV Deputy Governor Pham Thanh Ha, aims to lower market interest rates and support production, business activities, and priority sectors. The SBV's directive in October also required banks to reduce lending rates by 1.5-2 percentage points for these sectors. Initial results show average interest rates on newly mobilized deposits fell by approximately 0.4 percentage points and newly issued loans by 0.2-0.5 percentage points compared to mid-October.