At the Government's regular press conference in Hanoi on November 4, State Bank of Vietnam (SBV) Deputy Governor Pham Thanh Ha said the SBV has instructed credit institutions to mobilise resources, reduce operating costs and share profits with customers by lowering interest rates to support economic growth.
What the SBV asked for
- Cut deposit rates by 0.5–1 percentage point a year on new deposits with terms of six months or longer, creating room for lending-rate cuts.
- Cut lending rates for production, business activities and priority sectors by 1.5–2 percentage points.
According to the Deputy Governor, banks have broadly cut listed rates on new deposits of at least six months, and more than 20 banks have announced preferential credit programmes for businesses and priority sectors, with rate reductions of 0.5–2 percentage points a year. For the last two months of the year, the SBV will manage monetary policy proactively and flexibly, prioritising market liquidity and adequate capital supply.
Businesses start to feel the difference
According to VnEconomy, by the end of October 2026 at least 22 commercial banks had announced lending-rate cuts, commonly 1.5–2 percentage points a year; 15 of them offered preferential packages with a total limit of over VND451 trillion, mainly short-term loans under six months for production and business. Agribank and MB confirmed the cuts apply to both new loans and existing debts.
Viet Phat Steel JSC received a cut of about 1.5 percentage points, bringing its rate down to 6.1% a year. Its CFO, Pham Thi Hai, said the savings will be reinvested in raw materials. Austdoor Group received cuts of 0.5–1.5 percentage points and expects growth of about 35% in 2026.
Balancing with bank health
Analysts note banks' net interest margins (NIM) may come under pressure as early as Q4 2026. FiinRatings data released on October 30 showed state-owned commercial banks averaged a NIM of 2.8% in the first half, while the four largest joint-stock banks (ACB, MB, Techcombank, VPBank) averaged 3.9%. Parallel cuts in deposit rates are expected to help banks keep room to share benefits with customers.
Key takeaways
- The SBV asked for 1.5–2-point cuts in lending rates for production, business and priority sectors.
- At least 22 banks have cut rates; 15 offer packages with a combined limit of over VND451 trillion.
- Lower funding costs help businesses step up production for the year-end season.