Addressing the National Assembly, State Bank of Vietnam Governor Pham Duc An outlined monetary policy management, savings trends, interest rate spreads, and measures to improve businesses’ access to bank credit.
Governor Pham Duc An said short-term deposits currently account for as much as 80 percent of total deposits in the banking system. Depositors frequently roll over their funds, creating practical stability for mobilized capital. Commercial banks’ ability to raise short-term funds at lower interest rates has also helped reduce pressure on lending rates.
In managing monetary policy, the governor said the central bank remains committed to maintaining a balance between macroeconomic stability, inflation control, exchange-rate management, and economic growth support. In addition to refinancing and open-market operations, the banking sector has actively implemented a refinancing credit package for social housing loans under the direction of the Prime Minister.
According to the governor, credit growth across the banking system had reached 12.27 percent compared with the end of 2025 at the time of reporting.
“The banking sector has worked to control interest rates. Specifically, deposit rates increased by 1.42 percent, while lending rates rose only 0.99 percent, showing that the gap between deposit and lending rates is narrowing in order to share difficulties with the economy,” the State Bank of Vietnam Governor said.
He said capital is generally being allocated to priority areas. Of total outstanding loans in the economy, 77.44 percent have been directed to production and business activities. Outstanding loans to small and medium-sized enterprises (SMEs) exceed VND4 quadrillion (US$154.2 billion).
Real-estate credit remains under control and expanded by only 9.84 percent, lower than the overall credit growth rate of the economy.
Discussing barriers that limit SME access to credit, Pham Duc An said the challenges stem from small capital bases, weak resilience, fluctuating business plans, and especially a lack of financial transparency.
To address these obstacles, the governor outlined two essential requirements for businesses: ending the practice of maintaining “two balance sheets,” whereby one set of accounts is used for tax purposes and another for bank loan applications; and improving transparency while demonstrating the ability to repay debt.
“The State Bank will encourage and guide commercial banks to expand lending to businesses that meet these criteria”, Mr. Pham Duc An pledged.
At the same time, for businesses facing temporary difficulties, the State Bank has introduced mechanisms allowing debt repayment rescheduling, creating conditions for credit institutions to support enterprises through challenging periods.
