Hanoi – Vietnam’s State Bank is maintaining a supportive stance for key economic sectors, keeping interest rates on priority loans at competitive levels. This move aims to bolster growth in areas like agriculture, exports and slight-to-medium enterprises, even as broader economic conditions are carefully monitored. The commitment to accessible capital comes as the country continues to navigate a period of sustained, but measured, economic expansion.
The current environment sees average lending rates for commercial banks in Vietnam ranging from 7.0 to 9.3% per annum, according to the State Bank. However, short-term loans in Vietnamese Dong (VND) directed towards priority sectors are currently averaging around 3.8% annually – below the regulatory maximum of 4%. This represents a slight decrease of 0.1 percentage points compared to December 2025, signaling a continued effort to ease financial burdens on crucial industries.
For longer-term financing, interest rates on VND loans are currently set as follows: 3.9 to 4.5% per annum for terms of 1 to 6 months; 4.8 to 6.3% for 6 to 12 months; 5.1 to 6.5% for 12 to 24 months; and 6.7 to 6.9% for periods exceeding 24 months. Loans denominated in foreign currencies, specifically US dollars, are being offered at rates between 4.0% and 5.1% per annum.
Focus on Agricultural and Rural Development
The State Bank’s strategy isn’t simply about lowering rates; it’s about directing capital where it’s most needed. A recent meeting between the State Bank’s regional branch 9 and the Da Nang Business Association highlighted the importance of addressing obstacles to accessing capital, particularly within priority sectors. This collaborative approach aims to ensure that funds reach businesses and individuals effectively. The focus on agriculture and rural areas is particularly noteworthy, with institutions like the Go Noi People’s Credit Fund actively deploying credit to support farmers and cooperatives. According to Do Phu Thong, Chairman of the Board of Directors of the Go Noi People’s Credit Fund, the fund is prioritizing simplified procedures and rapid disbursement of loans at preferential interest rates to help individuals and cooperatives grow their businesses.
Deposit Rates Remain Stable
Alongside the lending rates, deposit rates are also holding steady. The average interest rate on VND deposits across national commercial banks is currently between 0.1% and 0.2% per annum for demand deposits and those with maturities of less than one month. Rates increase with longer deposit terms: 3.9 to 4.5% for 1-6 month terms, 4.8 to 6.3% for 6-12 month terms, 5.1 to 6.5% for 12-24 month terms, and 6.7 to 6.9% for terms exceeding 24 months. Notably, interest rates on US dollar deposits remain at 0% per annum for both individual and institutional clients.
Impact on Small and Medium Enterprises
The favorable lending conditions are expected to have a significant impact on small and medium-sized enterprises (SMEs), which are a vital engine of Vietnam’s economic growth. Access to affordable credit allows these businesses to invest in expansion, upgrade technology, and increase employment. The government’s commitment to supporting SMEs aligns with broader efforts to foster a more resilient and diversified economy. The prioritization of industries like export-oriented manufacturing and high-tech enterprises further underscores this strategy.
The State Bank of Vietnam’s approach to managing interest rates and directing credit reflects a broader commitment to sustainable economic development. By maintaining low rates for priority sectors and ensuring stable deposit rates, the central bank is aiming to strike a balance between supporting growth and maintaining financial stability. This strategy is particularly important in the context of global economic uncertainties and the necessitate to foster long-term resilience.
Looking ahead, the State Bank of Vietnam will continue to monitor economic conditions and adjust its policies as needed. The next key data release will be the February 2026 inflation report, scheduled for release on March 15th, which will provide further insights into the effectiveness of current monetary policies.
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