Credit boom in Vietnam: low interest rates promote growth and innovation!

Credit boom in Vietnam: low interest rates promote growth and innovation!

Loan growth in Vietnam shows a remarkable increase of 3.93% by the end of the first quarter of 2025. This rate is 2.5 times higher than last year, when growth was only 1.42%. The low interest rate policy of the State Bank of Vietnam (SBV), which is intended to stimulate loan demand from both companies and households, plays a crucial role. Loud vietnam.vn The loan interest rate was reduced by 0.4% compared to the end of 2024, which facilitates access to capital and is particularly beneficial for small and medium-sized enterprises.

At the same time, deposit rates remained almost unchanged until the end of the first quarter, with a slight increase of 0.08%. For example, Agribank reduced deposit interest rates to 2.4% per annum, while VPBank reduced their interest rates to 3.8% per annum. This trend continues in medium-term and long-term investments, where institutions such as BVBank, OCB and Eximbank have also reduced their interest rates.

Support from Agribank

From January 1, 2024, Agribank will make further interest rate adjustments. Interest rates on medium-term and long-term loans intended to support production and business activities and everyday needs will be reduced to a fixed rate of 7.0% per annum. This now applies to a period of 12 to 24 months, which is very important for many borrowers. Agribank emphasizes that these measures aim to support people and companies by optimizing credit costs and providing capital for restructuring.

In 2023, Agribank reduced loan interest rates by 1.3 to 4% in a total of eight steps compared to the beginning of the year. In addition, various interest rate support programs have been implemented, including loans for the forestry and fishing industries, as well as special programs to support social housing loans and health workers. This shows the bank's commitment to supporting particularly disadvantaged groups and creating opportunities.

Building blocks for future growth

The state bank's low interest rate policy continues to be seen as the key to economic growth. It is forecast that lending rates could fall by a further 0.03 to 0.08 percentage points in the second quarter of 2025 and beyond. This will particularly strengthen small and medium-sized companies, which will take advantage of the lower interest rates to invest in technologies and improve their competitiveness.

The State Bank of Vietnam has clearly communicated that interest rate cuts will be coordinated and supported to stabilize the economy and stimulate capital flows. A well-known example is the implementation of three interest rate reduction programs on existing loans of almost 2 million customers, which brought an estimated interest rate reduction of over VND 1,000 billion in 2023 and will continue in 2024. Mobilization interest rates in Market 1 have also fallen, providing further scope for economic activity.