The State Bank of Vietnam requested commercial banks to reduce deposit interest rates from March 6, 2023

According to the content at a recent meeting chaired by the State Bank of Vietnam, from March 6, 2023, the banking system will have a reduction in deposit interest rates, thereby contributing to reducing lending interest rates, reducing the pressure on capital costs for businesses.

In which, four state-owned joint-stock commercial banks namely Vietcombank, BIDV, Agribank and Viettinbank to decrease rates by 0.2% p.a. compared to the listed interest rate of each bank as of February 27, 2023 for the term from 6 to 12 months.

All joint stock commercial banks will reduce the deposit interest rate by 0.5% p.a. compared to the interest rate of each bank as of February 27, 2023 for terms from 6 to 12 months.

The highest interest rates at banks are now popular from 8.7-9.5% p.a., applied for the term of 12 months or longer.

According to many experts, although there are still many pressures, the interest rate level is likely to peak in the first half of 2023 and then gradually "cool down", thereby reducing pressure on lending rates.

The continuation of a large-scale reduction in deposit interest rates from March 6, 2023 will create a premise for interest rates to cool down.

According to businesses, medium-term interest rates above 10% are currently being applied, causing difficulties and great pressure on production and business activities. Therefore, many businesses expect banks to share with businesses during the current difficult period and expect interest rates to decrease in the near future.

In order to help remove difficulties in capital for businesses, at the program connecting banks and businesses, 16 commercial banks in Ho Chi Minh City has signed a commitment to lend to 64 businesses, cooperatives and business households in Ho hi Minh City with a total capital of about VND 11,000 billion, short-term lending interest rate at 7% p.a., medium-long term at 10% p.a.

Kylie Nguyen