Borrowing costs in Vietnam’s commercial banking sector remain a heavy burden for local businesses despite official rate cuts ordered by the central bank in October 2026.
- New loan interest rates dropped by 0.2 to 0.5 percentage points per year by late October 2026, according to State Bank of Vietnam data.
- System-wide credit growth reached 11.44% by mid-October 2026, outpacing deposit growth of 11.22% and straining banking liquidity.
- Existing borrowers often face rigid loan contracts that prevent immediate relief from newly announced preferential lending programs.
Pham Van Khoi, owner of the Khoi Thuan building materials shop in Nam An Phu commune, holds a short-term loan with a state-owned commercial bank in the Big 4 group in Hai Phong.
That interest rate stands at 9.1% per year, nearly 3% higher than his original rate. When he contacted his bank on November 9 to ask about rate cuts under new central bank directives, staff told him the matter was still under review.
On October 19, State Bank of Vietnam Governor Pham Duc An urged commercial banks to lower deposit rates and focus on reducing lending rates by 1.5 to 2 percentage points annually for production, business, and priority sectors. Two days later, the central bank issued official letter No. 9736/NHNN-CSTT to mandate lower rates across distribution channels and strengthen implementation oversight.
Agribank announced rate cuts of up to 2% per year, while Vietcombank committed to lowering program rates by at least 2% annually. BIDV introduced short-term loans starting at 6% per year depending on the borrower, term, and industry. However, advertised rate cuts do not apply universally to all outstanding debt.
Deputy State Bank Governor Pham Thanh Ha reported on November 4 that the average interest rate for new loans in late October 2026 fell by roughly 0.2 to 0.5 percentage points compared to mid-October. More than 20 banks rolled out preferential programs promising cuts of 1.5 to 2 percentage points.
The gap between advertised rates and actual portfolio averages stems from varying customer eligibility criteria, preferential timeframes, and contractual terms on legacy debt. Consequently, lower rates on new originations do not automatically translate to cheaper capital for every existing borrower.
| Banking and Credit Metric | Reported Value or Change | Timeframe |
|---|---|---|
| New Loan Rate Reduction (National Average) | Down 0.2 to 0.5 percentage points | Late October 2026 |
| System-Wide Credit Growth | Up 11.44% | Mid-October 2026 |
| System-Wide Deposit Growth | Up 11.22% | Mid-October 2026 |
| Average New Loan Rate in Hai Phong | 9.03% per year (VND) | October 2026 |
| Total Outstanding Credit in Hai Phong Region | Nearly 561.36 trillion VND (Up 10.59% from end-2025) | October 31, 2026 |
Banks have trimmed listed deposit rates by 0.5 to 0.7 percentage points for specific terms. Actual yields paid to depositors can run higher if clients meet strict thresholds for deposit size, maturity, or transaction type.
In Hai Phong, industrial, export, trade, and logistics enterprises rely heavily on external capital to finance raw materials, fulfill orders, and manage transport. Regional data from State Bank of Vietnam Region 6 shows that total outstanding credit in the area reached nearly 561.36 trillion VND by October 31, marking a 15.51% increase over the previous year. Meanwhile, capital mobilization climbed to nearly 725 trillion VND, growing 14.77% year-over-year.
The State Bank of Vietnam continues to direct financial institutions to streamline operations, cut administrative expenses, and share profitability with commercial clients.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
