Vietnam Central Bank

The aim is to steer the market towards a downward trend in interest rates in the future by lowering the ceiling on deposit and operating rates.

This funding, along with a $2 million contribution from the Japan Fund for Prosperous and Resilient Asia and the Pacific financed by the Government of Japan, will support technical assistance to expand inclusive and climate finance in the country.

After the last two interest rate cuts, lending rates on the market have fallen to below 8% per annum.

A higher interest rate cap would have a direct impact on banks, businesses, and people.

The banking sector is set to continue promoting the use of non-cash payment methods with greater convenience and safety for the public.

The banking sector stands ready to provide sufficient capital for economic development.

The Government’s efforts have resulted in a modest rise of 0.09% in the average interest rates against early 2021.

Total outstanding loans from banks in the real estate market were estimated at over VND2,280 trillion (US$98.32 billion), up 10.19% against late 2021.

The move is aimed at promoting non-cash payment in Vietnam during the period.