Credit growth far from year-end target despite falling interest rates

The central bank has lowered the operating interest rates four times since the beginning of the year by 0.5 to 2.0 percentage points per annum, considering the continuing global upward trend in interest rates. While the interest rates for deposits have decreased, the capital mobilisation in banks has continued to increase over the past nine months. For instance, Vietcombank has reduced deposit interest rates nearly 10 times and loan interest rates five times for all customer segments, both individuals and businesses. BIDV has announced a VNĐ300 trillion credit package with interest rates 0.5 to 2 percentage points lower than normal lending rates. For example, disbursement of the VNĐ15 trillion credit package for the aquaculture sector, launched in mid-July, has reached around VNĐ5.5 trillion.