Want to be in the loop?
subscribe to
our notification
Business News
BANKS LOWER INTEREST RATES
The State Bank of Vietnam (SBV) has announced plans to reduce the ceiling levels of deposit rates for short-term tenors and lending rates for priority sectors from today, November 19. Local commercial banks have also raced to lower their interest rates in recent days.
Accordingly, the maximum rates for savings of one to six months will be cut from 5.5% to 5%, while the highest rates for tenors of less than one month will be reduced from 1% to 0.8%.
In addition, the central bank will drop the lending rate for Vietnamese dong short-term loans for priority sectors from 6.5% to 6%.
Meanwhile, local commercial banks have cut their annual deposit rates for the peak season for capital mobilization.
For example, the Bank for Foreign Trade of Vietnam (Vietcombank) and Vietnam Bank for Industry and Trade have lowered their rates by 20 basis points for multiple tenors. In late September, the Bank for Investment and Development of Vietnam also cut the interest rates for one- and two-month deposits by 20 basis points.
Moreover, Vietnam Prosperity Joint Stock Commercial Bank has reduced the deposit rates by 10 basis points for all tenors, though it had said in a statement released on November 8 that it would cut the rates for short-term savings only.
Smaller banks have also entered the deposit rate reduction race. At Tien Phong Bank, the interest rates have been cut by 10 basis points for savings of six to 13 months and 30 basis points for those of more than 13 months.
Viet Capital Bank has also dropped its rates by 20-50 basis points for deposits of eight to 60 months.
A representative of Viet Capital Bank stated that the deposit rate cut is aimed at gradually creating capital resources with lower costs to better serve customers in priority sectors, in line with the State’s policies.
According to Dr. Can Van Luc, an expert in finance and banking, banks have lowered their deposit rates to adjust the capital mobilization plan. Banks have ensured the flow of capital for the rest of the year, so the deposit rate reduction is reasonable.
However, the rates have been reduced slightly, so the difference in the deposit rates among banks remains significant.
On the other hand, banks have also cut their lending rates. For example, Vietcombank on November 18 cut the lending rate for priority sectors for the third time this year to 5%. It has also lowered the rates by 50 basis points for ordinary loans to enterprises.
In addition, Vietnam Maritime Joint Stock Commercial Bank has offered a reduction of up to 2% for new customers and 1% for existing customers.
At a recent seminar, Dr. Bui Quang Tin, president and CEO of BizLight Business School, remarked that many banks have launched preferential credit packages to attract more customers.
The SBV’s interest rate reduction has also paved the way to reach the Government target of reducing the lending rates by at least 50 basis points next year.
Source: The Saigon Times
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.