At the same time, keeping a low deposit interest rate for a long time is also a necessary condition to pull the lending interest rate down. However, lending interest rate is still about 1.6 percentage points higher than the bottom recorded in the fourth quarter of 2021. Specifically, after the State Bank of Vietnam (SBV) lowered its policy interest rates four times, deposit interest rates decreased rapidly. Actual lending interest rate has also gone down by about 2-2.5 percentage points for new loans. VCBS expects the lending interest rate will decrease by another 1-1.5 percentage points in 2024.

Source: Viet Nam News December 20, 2023 14:38 UTC