The State Bank closely monitors interest rates to ensure a reduction in lending rates for all terms.

The Deputy Governor of the State Bank of Vietnam (SBV) said that interest rate reduction for businesses, depositors, and banks needs to be shared simultaneously, synchronously, and in a common manner to create conditions for expanding investment, mobilizing capital, lending capital, and using capital effectively, creating a GDP of over 8% this year.

As reported by PNVN newspaper, on the afternoon of March 5, the Government Office held a press conference for the regular Government meeting in February 2025.

Regarding solutions to reduce lending interest rates to promote economic growth in 2025 to reach 8% or more, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said: The task of achieving 8% GDP growth, if there is an opportunity, double-digit growth from this year to create a premise for the next stage, is one of the tasks that all levels and sectors, from the central to local levels, are actively participating in.

According to the representative of the State Bank, to grow, we must expand investment. To expand investment, there are two issues: One is to have investment capital; two is to increase the ability and conditions for capital absorption of enterprises and investors.

"Regarding the banking industry alone, this year's growth rate is set at around 16%, so the outstanding debt will increase by at least 2.5 million billion by the end of the year." If the economic growth rate is higher than 8%, then with the current investment capital structure ratio, between bank capital and other capital sources for economic development investment, it must increase by over 2.5 million billion.

To achieve the target growth in capital, the annual loan turnover must be faster, and the capital that is currently stuck and difficult to access must be cleared. Currently, "we are coordinating with ministries and sectors to present to the Government solutions to clear the capital that is stuck in projects," said Mr. Tu.

Regarding interest rates, if we want to expand investment, we must lower interest rates. "In the first two months of 2025 alone, the direction of the Government, the Prime Minister, as well as the banking industry and credit institutions is to continue to reduce interest rates in a stable direction. Then, it will be reduced on the basis of reducing the costs of commercial banks in the most positive and highest way to create conditions to reduce lending interest rates of commercial banks."

Deputy Governor of the State Bank of Vietnam Dao Minh Tu answers the press

Recently, taking advantage of the early period after the Lunar New Year, the number of people depositing money will be high, some banks have increased the interest rates for some terms. However, the goal and viewpoint at this time is to create favorable conditions to support businesses and borrowers at positive interest rates.

The Prime Minister has issued Official Dispatch No. 19 with very drastic and timely instructions, appropriate in the context of the need to reduce interest rates. To reduce lending interest rates, we must reduce deposit interest rates. All are in line with the policy of reducing interest rates so that businesses, depositors, and banks can share in a simultaneous, synchronous, and common way to create conditions for expanding investment, mobilizing capital, lending capital, and using capital effectively, creating a GDP of over 8% this year.

Mr. Dao Minh Tu said: The State Bank has quickly directed banks that have increased deposit interest rates in the recent past to promptly adjust them down. So far, 12 banks have reduced interest rates. On average, deposit interest rates have been reduced by 0.7%. Many banks have launched credit packages that are very suitable at this time, especially consumer loans and social housing loans for the poor and low-income people.

In the coming time, the State Bank will closely monitor interest rates to ensure that it can both create initiative for commercial banks and share with businesses by reducing costs and interest rates for loans of all terms.

The State Bank will proactively operate its tools to create conditions for commercial banks to have liquidity and capital, without having to increase mobilized capital.

Source: https://phunuvietnam.vn/ngan-hang-nha-nuoc-giam-sat-chat-lai-suat-de-dam-bao-giam-lai-suat-cho-vay-tat-ca-cac-ky-han-20250305172324966.htm