On the afternoon of March 5, at the regular Government press conference in February 2025, Permanent Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu answered questions from the press about the situation where many banks have increased interest rates in early 2025, which could increase input costs for businesses.
Regarding interest rates, according to Mr. Dao Minh Tu, at the end of 2024, the banking industry has proactively reduced the average interest rate compared to 2023, the average interest rate reduction of the banking system is 1.1%. In particular, some state-owned commercial banks have lowered interest rates to 1.6%.
However, Mr. Dao Minh Tu admitted that recently, "honestors" in the early stages of the year after Tet have had many depositors, so 8 banks have increased deposit interest rates for some terms.
The leader of the SBV affirmed that the SBV's viewpoint is to create conditions for businesses and borrowers to have a positive interest rate, therefore reducing interest rates.
The SBV has requested banks to lower interest rates, first of all to stabilize the market and aim to reduce and save banking operating costs in the highest way to facilitate the reduction of lending interest rates.
Permanent Deputy Governor Dao Minh Tu said that the Prime Minister has issued Official Dispatch No. 19 directing interest rate reduction. The Prime Minister's direction is very decisive, timely and the spirit of direction is clear and appropriate.
Because in the condition of wanting to reduce loan interest, we must reduce deposit interest. Banks, businesses and people must share to effectively use capital.
"After the Prime Minister's telegram, we immediately directed banks to increase deposit interest rates and reduce interest rates, and most of the 8 banks have adjusted and reduced deposit interest rates," said Mr. Dao Minh Tu.
Mr. Dao Minh Tu affirmed that currently, according to statistics from the State Bank, there are over 12 banks that have reduced deposit interest rates, some banks have reduced deeply. The average reduction in deposit interest rates is about 0.7% and banks all have consumer and housing loan packages for the poor and those in need.
The Standing Deputy Governor of the State Bank of Vietnam said that in the coming time, the State Bank of Vietnam will closely monitor interest rates, in the spirit that the banking industry must share with businesses about profits, reduce costs, and reduce lending interest rates for all terms.
The SBV will use its tools to create conditions for commercial banks to have liquidity and capital to avoid increasing input mobilization, thereby increasing loan interest.
"In the banking industry alone, in order to support economic growth of 8%, we set the credit growth rate this year at about 16%, so that at least the outstanding loans increase by the end of the year by about 2.5 million billion VND.
If the economic growth rate is higher than 8%, then with the current investment capital structure ratio, between banking capital and other capital sources for economic development investment, it must increase by over 2.5 million billion VND", said Mr. Tu.
According to Mr. Tu, to grow, we must expand investment, to expand investment, there are 2 issues: First is to have investment capital; second is to increase the capacity and conditions for capital absorption of enterprises and investors.
