Financial institutions were directed to cut operational costs, streamline procedures, adopt technology, and restructure operations to enhance efficiency. They were also urged to share profits by reducing lending rates, aiding businesses and creating jobs while maintaining the banking sector's stability.

Large local banks have announced reductions for their prime lending interest rates following the Bank of Thailand (BoT)'s policy rate cut, aiming to ease the financial burden for borrowers.

Nearly 20 commercial banks in Vietnam have adjusted deposit rates since the beginning of this month, with most lowering rates.

Price control work was effective in the first nine months of this year, with the average consumer price index (CPI) in the period up 3.16% year on year, leaving plenty of room to maintain stability in prices, said Deputy Prime Minister Le Minh Khai.

The State Bank of Vietnam (SBV) has sent a document to credit institutions and branches of foreign banks and SBV in provinces and centrally-run cities regarding the reduction of interest rates.

Commercial joint stock banks have continued to lower deposit interest rates since the middle of this month, a move that is expected to help reduce lending rates and support businesses.

Experts forecast lending interest rates may hike in the short term but remain stable or even decline in the long run, providing appropriate moves are made.

By the end of August, the total outstanding credit of the banking system in the capital city of Hanoi had reached 2.38 quadrillion VND (104 billion USD), an increase of 1 percent over the previous month and 8.3 percent compared to the same period last year.

The Vietnam Bank for Agriculture and Rural Development (Agribank) on July 15 said it will cut lending rates in Vietnam dong for the fifth time.

Many banks have cut deposit interest rates after the State Bank of Vietnam (SBV) lowered the ceiling levels of interest rates from October 1.

Many banks no longer benefit from demand deposits as the low-cost capital source has declined sharply due to the impacts of the COVID-19 pandemic.

Lower lending rates in the financial-banking market may not mean good things for the securities market, specialist Dao Phuc Tuong said on August 13.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has introduced a second interest rate cut to help companies and individuals hurt by the COVID-19 pandemic.

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has announced a 30 trillion VND (over 1.28 billion USD) credit package to support its customers to overcome difficulties amid the COVID-19 pandemic.

Commercial banks continued to cut deposit rates on September 19 after the State bank revised down benchmark rates.

Several major banks have cut lending rates to offer timely support to customers, which is described as a positive sign, especially at the end of the year when the demand for loans increases.

Many commercial banks raised deposit interest rates in recent months, triggering worries about the increasing pressure on the lending rates.

The total outstanding loans in Hanoi was estimated at 1.6 quadrillion VND (70 billion USD) in the first half of this year, according to the State Bank of Vietnam’s Hanoi branch.

Interest rates for different terms from now to the end of 2017 are likely to decline by 0.5–1 percent from 2016 thanks to positive signals from the stock and property markets, macro-economic indexes, the Government’s attentions to businesses and banks’ strategies for attracting new clients.

Deposit interest rates in the Vietnamese dong this year are expected to rise one percent against last year, according to a report from the National Financial Supervisory Commission (NFSC).