A customer borrows at a bank in Hanoi. Lower lending rate is expected a factor that promotes the recovery of consumption and private investment in the coming quarters. (Photo: VNA)
Hanoi (VNS/VNA) - Lending interest rates will drop sharply in thesecond half of 2023 as capital costs of commercial banks are falling, analystsforecast.
In a recent report, VnDirect’s analysts said they believe lower lending rateswill be the factor that promotes the recovery of consumption and privateinvestment in the coming quarters.
According to VnDirect’s analysts, the capital cost of banks is reducing thanks tothe impact of the State Bank of Vietnam (SBV)'s four policy interest rate cutssince the beginning of this year and the issuance of Circular No. 02/2023 thatallows extending the provision for bad debts.
According to VnDirect's statistics, at the end of July, the 12-month depositinterest rate of State-owned banks dropped to 6.3 per% year, down 1.1percentage points compared to the beginning of the year.
Meanwhile, 12-month deposit interest rates of private banks range from 6.3% to7.0% per year and average at about 6.7% per year, down nearly 1.6 percentagepoints compared to with the beginning of the year. In the group of private banks,deposit interest rates decrease most significantly by 0.3-0.7% per year in somebanks such as VIB, TPBank, LPBank, Sacombank, SeABank, VPBank, SHB and OCB.
VnDirect forecast the average deposit interest rate for 12-month term willdecrease to 6.0-6.2% per year in the second half of 2023 due to the impact offour policy interest rate cuts of the SBV and slow credit growth in the firsthalf of 2023. Besides, the Government will further promote public investment,thereby injecting more money into the economy, while the SBV still has room toloosen monetary policy.
The SBV has continuously asked credit institutions to minimise costs andstabilise lending interest rates to support business recovery and development.
The central bank set this year’s credit growth target for banks at 11%, buttotal outstanding loans in the economy increased by only 3.36% as of June 15compared to the end of 2022, the lowest level for the past ten years./.
With the expectation that interest rates will continue to fall in the coming quarters while corporate profits begin to recover, brokerages forecast that the Vietnamese stock market will be uplifted in the second half of 2023.
Banks have to lower lending interest rates to stimulate demand for new loans as credit growth falters and deposit interest rates have also dropped sharply.
Inactive cash showed signs of shifting to securities as banks continue to reduce deposit interest rates to below 8% per year, expanding the liquidity of the stock market.
There is still room to cut the policy interest rates by 0.5-1 percentage point in the third quarter, making them approach the levels before the strong rise in October last year, according to experts.
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.
A customer borrows at a bank in Hanoi. Lower lending rate is expected a factor that promotes the recovery of consumption and private investment in the coming quarters. (Photo: VNA) 
