The Government has put forward a proposal to continue with the 2% interest rate support policy for enterprises, cooperatives, and business households, at a recent meeting of the National Assembly Standing Committee.

Going against the usual rule of gradual increases in the last months of a year, deposit interest rates in most banks are anchored at low levels, and even some continue to decrease.

The United Overseas Bank (UOB) has maintained its economic growth forecast for Vietnam at 5.2% for 2023 and 6% for 2024 while forecasting that Vietnam will continue to cut regulatory interest rates in the remaining months of this year to balance economic growth and inflation pressure.

The four biggest banks in Vietnam have strongly cut interest rates for various deposit terms to the lowest levels of the year.

Commercial banks have persistently reduced deposit interest rates, resulting in rates for many terms now standing at just above 6% per annum.

International experts shared experience in public debt management and gave recommendations to Vietnam at a consultation workshop in Hanoi on August 17.

The Ministry of Planning and Investment (MPI) has proposed the government provide further support for Vietnamese small- and medium-sized enterprises (SMEs), including an interest rate reduction of another 2 percentage points per year.

The strong recovery of tourism has helped businesses in the industry prosper. However, risks such as economic recession, high interest rates and interest expenses still affect corporate profits.

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.

The latest deposit interest rates at the four major banks have simultaneously decreased to the lowest level in one year.