Deputy Prime Minister Nguyen Van Thang has asked the State Bank of Vietnam and credit institutions to implement measures to reduce lending rates by 1.5–2% for production, business and priority sectors. The instruction came at an October 16 monetary-policy meeting, according to the government news portal.
The figure represents a policy request. The meeting report does not establish that every bank has already changed its rates or that all existing borrowers have received revised terms.
Lower borrowing costs alongside banking safety
Thang acknowledged coordination between monetary and fiscal policy in supporting macroeconomic stability, inflation control and growth. He nevertheless said lending rates remained high, while international developments were increasing pressure on interest rates, exchange rates and inflation.
The central bank was asked to review earlier measures, deliver substantive reductions and maintain commercial-bank liquidity. Credit should flow towards production and designated priority activities under requirements for safe, effective expansion.
The instructions also covered refinancing at reasonable rates for banks participating in social-housing lending programmes. Managing bad debt and maintaining credit quality remain parallel responsibilities, with particular attention to risks associated with property lending.
Stronger supervision and disclosure
The deputy prime minister called for closer inspection of compliance with interest-rate regulations and central-bank instructions. Authorities were told to identify and address non-compliance and unhealthy competition within their powers.
Banks were asked to reduce operating costs, expand digital transformation, disclose rates and strengthen risk management and internal controls. The central bank must also continue restructuring weak institutions and addressing cross-ownership and manipulation that could accumulate risks across the banking system.