The State Bank of Vietnam (SBV) has recently granted the first credit growth quotas in 2023 to a number of banks, with a majority of them receiving lower rates than last year.

The group of the four biggest State-owned banks (Big 4) have launched preferential loan packages with interest rate reductions of up to 3% per year to lower short-term lending rates to only 7% per year.

Many banks have just launched credit packages with preferential lending interest rates that decreased by between 0.5-3% per year for customers in the fields of business and production, including real estate.

The State Bank of Vietnam (SBV) has expected credit growth to hit 14-15% this year, leaving a possibility that it might adjust the orientation to suit the actual business situation and developments.

Many banks reported negative results in securities trading and investment in 2022 due to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market, cafef.vn reported.

Although significant challenges remain for the economic and investment environment in Vietnam, there are still opportunities for investors to increase profits through investment channels if they know how to restructure their portfolio, experts have said.

The race of interest rate hikes among commercial banks is showing signs of cooling down as many banks have adjusted down the rate by several percentage points per year after the Lunar New Year (Tet) holiday and have set stricter conditions for customers to enjoy the high rates.

VOV.VN - Vietnamese exporters are required to swiftly grasp information in order to adjust production activities in line with market conditions amid global high inflation, along with rising domestic exchange rates and interest rates, according to insiders.

VNDirect Securities Corporation expects Vietnamese foreign exchange reserves to recover to 3.3 months of imports and reach US$102 billion by the end of this year from the current level of US$89 billion last year, said in its updated macro report.

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has directed banks to continually reduce input costs with an aim to cut loan interest rates.