Vietnam’s banking system is showing signs of returning to a period of money surplus as no bank needs the State Bank of Vietnam's (SBV) capital in the open market operation (OMO) channel and overnight interbank interest rates have dropped sharply.

The State Bank of Vietnam, the central bank, announced five separate decisions on March 31, to further lower some key interest rates, with effect from April 3. This is the second round of rate cuts in March.

The central bank likely will further cut interest rates in a near future, according to deputy governor of the State Bank of Vietnam (SBV) Dao Minh Tu.

The Singapore-based United Overseas Bank (UOB) anticipates the State Bank of Vietnam (SBV) will cut its refinance rate in the second quarter this year by 100 basis points to 5.00%.

VOV.VN - Prime Minister Pham Minh Chinh has signed a document requesting that relevant ministries, agencies, and localities remove obstacles to the real estate market which has been in limbo for months.

There have been positive signs for the property market's recovery, said industry experts and economists.

Retail stocks have dropped significantly due to the decline in business results in the context of the global economic recession and high interest rates.

The State Treasury raised nearly VND36.6 trillion (US$1.58 billion) worth of Government bonds, or 79.12% of the total G-bonds on offer, via 12 auctions on the Hanoi Stock Exchange in February.

The State Bank of Vietnam (SBV) on March 14 issued two decisions to reduce regulatory interest rates by 0.5% to 1%, which will come into force on March 15.

Credit growth in the first months of this year slowed significantly due to high interest rates and firms’ poor health, raising concerns about rising bad debts.