Authorities seek further reductions to lending rates

Vietnamese authorities are stepping up efforts to lower lending rates and support business activity, while maintaining stability in liquidity and the foreign exchange market.

- By Kaitlyn Le

Deputy Prime Minister Nguyen Van Thang has called for lending rates to be kept at the lowest possible level to support businesses and economic growth, as borrowing costs remain elevated despite a rebound in credit demand.

The directive was issued at the government's regular meeting on May 4, amid signs that credit growth is accelerating while enterprises continue facing pressure from high financing costs.

“I highly appreciate the State Bank of Vietnam (SBV) for its strong efforts in directing commercial banks to continue reducing lending rates,” he said, noting that future measures needed to be more effective and substantive, particularly regarding lending rates, which directly affect business operations.

Lending rates must be kept at the lowest possible level, the deputy prime minister added, while requesting credit to be prioritised for production and business activities. He also urged commercial banks to share more of the burden with businesses, adding that the SBV should support efforts to narrow the gap between deposit and lending rates.

According to the Ministry of Finance’s April socioeconomic report, as of April 16, total outstanding credit to the economy reached $770.7 billion, up 3.6 per cent compared to the end of 2025 and 18.62 per cent higher on-year.