The move made by some commercial banks to reduce the lending interest rate, and the decision of the State Bank of Vietnam to increase credit by 1.5 percent to 2 percent has had a positive impact on manufacturing and export enterprises.
According to the branch of the State Bank of Vietnam in Ho Chi Minh City, commercial banks citywide said that short-term interest rate of loans for businesses participating in the market stabilization program in 2022-2023 will be 5.9 percent -6.4 percent a year while businesses asking for medium and long term loan will enjoy the interest rate of 6.5 percent-10 percent a year.
Many commercial banks have announced a 0.5-3 percent cut in lending interest rates and many policies to support customers affected by the Covid-19 pandemic. However, feedback from individual customers in Ho Chi Minh City shows that banks have refused to aid them, even when they are in blocked areas and need priority.
The wave of interest rate cuts has been activated, and it is forecasted that the interest rate level will remain low from now until the end of the year to support businesses and the economy amid the context that the Covid-19 pandemic prolongs as currently.
The Vietnam Association of Financial Investors (VAFI) has recently made a proposal on deposit interest rates. According to VAFI, deposits in VND for short and medium terms are from 3.5 percent to 6.2 percent per annum, which is extremely high compared to other countries, leading to high lending interest rates, causing disadvantages for enterprises and a large number of low- and middle-income consumers.
According to Decision No.532/2021 issued by the Prime Minister, the preferential lending interest rate at the Vietnam Bank for Social Policies applied on preferential loans to rent and buy social housing or build, upgrade, and repair houses according to the provisions of Decree No.100/2015 on social housing development and management is 4.8 percent per annum.