A customer borrows at a bank in Hanoi. Lower lending rate is expected a factor that promotes the recovery of consumption and private investment in the coming quarters. (Photo: VNA)
Hanoi (VNS/VNA) - Lending interest rates will drop sharply in thesecond half of 2023 as capital costs of commercial banks are falling, analystsforecast.
In a recent report, VnDirect’s analysts said they believe lower lending rateswill be the factor that promotes the recovery of consumption and privateinvestment in the coming quarters.
According to VnDirect’s analysts, the capital cost of banks is reducing thanks tothe impact of the State Bank of Vietnam (SBV)'s four policy interest rate cutssince the beginning of this year and the issuance of Circular No. 02/2023 thatallows extending the provision for bad debts.
According to VnDirect's statistics, at the end of July, the 12-month depositinterest rate of State-owned banks dropped to 6.3 per% year, down 1.1percentage points compared to the beginning of the year.
Meanwhile, 12-month deposit interest rates of private banks range from 6.3% to7.0% per year and average at about 6.7% per year, down nearly 1.6 percentagepoints compared to with the beginning of the year. In the group of private banks,deposit interest rates decrease most significantly by 0.3-0.7% per year in somebanks such as VIB, TPBank, LPBank, Sacombank, SeABank, VPBank, SHB and OCB.
VnDirect forecast the average deposit interest rate for 12-month term willdecrease to 6.0-6.2% per year in the second half of 2023 due to the impact offour policy interest rate cuts of the SBV and slow credit growth in the firsthalf of 2023. Besides, the Government will further promote public investment,thereby injecting more money into the economy, while the SBV still has room toloosen monetary policy.
The SBV has continuously asked credit institutions to minimise costs andstabilise lending interest rates to support business recovery and development.
The central bank set this year’s credit growth target for banks at 11%, buttotal outstanding loans in the economy increased by only 3.36% as of June 15compared to the end of 2022, the lowest level for the past ten years./.
With the expectation that interest rates will continue to fall in the coming quarters while corporate profits begin to recover, brokerages forecast that the Vietnamese stock market will be uplifted in the second half of 2023.
Banks have to lower lending interest rates to stimulate demand for new loans as credit growth falters and deposit interest rates have also dropped sharply.
Inactive cash showed signs of shifting to securities as banks continue to reduce deposit interest rates to below 8% per year, expanding the liquidity of the stock market.
There is still room to cut the policy interest rates by 0.5-1 percentage point in the third quarter, making them approach the levels before the strong rise in October last year, according to experts.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
A customer borrows at a bank in Hanoi. Lower lending rate is expected a factor that promotes the recovery of consumption and private investment in the coming quarters. (Photo: VNA) 
