Deputy Prime Minister Nguyen Van Thang urged the central bank to execute timely, substantive measures to bring down overall interest rate levels, specifically targeting a 1.5–2% cut in loan rates for production, commerce, and priority sectors.
Deputy Prime Minister Nguyen Van Thang chairs a meeting on monetary policy management. (Photo: Duc Tuan).
Deputy Prime Minister Nguyen Van Thang has requested the State Bank of Vietnam (SBV) to urgently implement measures to reduce lending interest rates by 1.5 to 2 percentage points for production, business activities, and priority sectors to support citizens and enterprises.
The directive was issued during a meeting on monetary policy management for the final months of the year, held on October 16.
Assessments shared at the meeting indicated that prevailing lending interest rates remain elevated, adversely affecting capital costs and restricting access to credit for both businesses and individuals. Meanwhile, global economic developments continue to exert upward pressure on interest rates, exchange rates, and inflation.
The Deputy PM urged the central bank to execute timely, substantive measures to bring down overall interest rate levels, specifically targeting a 1.5–2% cut in loan rates for production, commerce, and priority sectors. The Governor of the SBV is directly tasked with overseeing these efforts, bearing responsibility for implementation outcomes while ensuring adequate liquidity across commercial banks.
Credit institutions must trim operating costs, enhance operational efficiency, lower lending rates, and publicly disclose interest rate schedules in full compliance with regulations. The SBV was instructed to step up inspections, audits, and strictly penalize any financial institutions failing to comply with rate-cut directives or engaging in unfair interest rate competition.
In addition, Mr. Thang called for directing credit flows into production, commerce, and priority sectors, alongside the continued rollout of government-mandated credit support programs.
Regarding the social housing loan program, the central bank was asked to provide refinancing at reasonable interest rates to participating commercial banks.
The Deputy PM also ordered strict oversight of credit quality and decisive resolution of non-performing loans (NPLs), especially bad debts linked to real estate. Authorities must accelerate the restructuring of weak credit institutions and eliminate cross-ownership, hidden ownership, and manipulation within the banking sector.