The US dollar may further strengthen against the Vietnamese dong to hit VND25,400 per dollar at the end of this month, according to experts.

The total social investment capital disbursed during January – September rose 6.8% to some VND2.42 quadrillion (US$97.2 billion) on the back of a fall in lending interest rate, robust production growth, and the continuation of tax incentives, according to the General Statistics Office (GSO).

The State Bank of Vietnam (SBV) has issued a circular on interest rates applied to US dollar (USD) deposits of organisations and individuals at credit institutions and foreign bank branches.

The State Bank of Vietnam (SBV) on September 17 reduced the interest rate on the open market operation (OMO) channel from 4.25% to 4% per year.

Several private and State-owned banks have reduced interest rates and offered debt relief for customers affected by Typhoon Yagi.

As of June 30, credit expanded 6% compared to the end of 2023 while total outstanding loans approximated VND14.4 quadrillion (US$563.3 billion), a positive signal showing this year's credit growth target of 14 - 15% is within reach, experts said. ​

The State Bank of Vietnam (SBV) has shortened terms and kept the interest rate of its bills unchanged to increase the attractiveness of the bill channel, which will help raise the interbank interest rates and reduce pressure on the USD/VND exchange rate.

Despite low interest rates, bank deposits have reached a new historic peak of VND16 quadrillion (US$628.5 billion) as of the end of March, according to the latest data from the central bank.

Credit within the banking system to the end of May 2024 increased by only 2.41% against the end of 2023, far from the credit growth target, the Government reported.

Many banks have adjusted up savings interest rates by 0.2-0.3% per year since early this months to lure depositors in the context that the savings amount at the banking system has declined for the first time after 25 consecutive month increase.