Interest rate cut contributes to supporting economic growth: economists
The State Bank of Vietnam (SBV) has cut regulatory interest rates for four consecutive times since the beginning of this year, in the context that world interest rates continue to rise and stay at a high level.
Consumers do transactions at VCB office (Photo: VCB)
Hanoi (VNA) – The State Bank of Vietnam (SBV) has cut regulatoryinterest rates for four consecutive times since the beginning of this year, inthe context that world interest rates continue to rise and stay at a high level.
The central bank’s decisions clearly reflect its efforts to support economic growth through the credit channel.
At present, the interest rate level basically remains stable, with deposit and lending interest rates tending to decrease gradually. The averagedeposit interest rate of commercial banks is about 5.8% per year, down 0.7%compared to the end of 2022, while the average lending interest rate in Vietnamesedong is about 8.9% a year, down 1%.
The SBV’s decision to continue reducing regulatory interestrates establishes a reduction trend for the market in the comingtime, thereby orienting credit institutions to take more drastic steps to reduce lending rates and accompany businesses and people to contribute topromoting economic growth and recovery, said SBV Standing Deputy Governor DaoMinh Tu.
Dr. Can Van Luc, member of the National Advisory Council onFinancial and Monetary Policies, said that the central bank’s move not onlyaims to assist banks and enterprises, and but also shows an increasingly clearsign of a shift in the monetary policy from being cautious to being loosened.
State Bank of Vietnam (Photo: vneconomy.vn)
Along with reducing interest rates, economists expect theSBV will have more solutions to increase the money supply, which has increased very slowly in thefirst half of this year. SBV Deputy Governor Tusaid that in February 2023, the State Bank assigned a credit growth limit tocommercial banks nationwide at 11%, following the year-long orientation of14-15%.
However, by June 15, the economy’s credit was still gloomy,standing at 12.32 quadrillion VND (524 billion USD), up 3.36% from the end of2022, and 8.94% year-on-year, which showed weak absorption of the economy.
Dr. Luc proposed the central bank speed up the restructuringof credit institutions with weak performances in order to minimise unhealthy competition in interest rates.
The Government should make more drastic directions toimprove the business and investment environment, and increase fiscal supportmeasures for businesses, he added./.
The State Bank of Vietnam (SBV) has decided to reduce regulatory interest rates from June 19, the fourth cut in a row since mid-March in efforts to aid economic recovery.
The State Bank of Vietnam (SBV) is cutting down a series of key interest rates by 0.25%-0.5% from June 19, which is expected to make a double impact on the economy thanks to stronger credit activities and higher liquidity.
Credit growth since the start of 2023 remains low, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said, blaming that fact on both subjective and objective causes.
The fourth cut in a row of regulatory interest rates by the State Bank of Vietnam (SBV) has provided an opportunity for commercial banks to reduce interest rates, thus attracting borrowers.
China’s Laoling city, in coordination with VINEXAD, hosted a series of events in Ho Chi Minh City from August 7-9 to seek trade and economic cooperation with Vietnam.
Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
Consumers do transactions at VCB office (Photo: VCB) 
State Bank of Vietnam (Photo: vneconomy.vn) 
