At the Government’s regular press conference for October 2026, held on November 4, 2026, Deputy Governor Pham Thanh Ha of the State Bank of Vietnam (SBV) said that commercial banks had reduced their listed deposit interest rates by 0.5 percentage points for terms of six months or longer. More than 20 banks had also announced preferential credit program for production and business activities and priority sectors, offering lending interest rate reductions of 1.5–2 percentage points.
Deputy Governor Pham Thanh Ha answers questions from reporters at the Government’s regular press conference for October 2026
According to Deputy Governor Pham Thanh Ha, amid complex global economic developments and interest rate hikes by many central banks, domestic market interest rates have come under considerable pressure in recent months. In response, the SBV has resolutely and synchronously implemented a range of measures to help bring down market interest rates.
In October 2026, the SBV directed credit institutions to mobilize all available resources, reduce operating costs, share profits and implement coordinated and decisive measures to lower interest rates. Specifically, credit institutions were instructed to reduce their listed deposit interest rates and interest rates on newly mobilized deposits by 0.5 percentage points for terms of six months or longer, and to lower lending interest rates by 1.5–2 percentage points for production and business activities and priority sectors.
The Deputy Governor noted that positive results had been achieved after a relatively short period of implementation.
Regarding listed deposit interest rates, commercial banks have adjusted their rates downwards by 0.5 percentage points for terms of six months or longer, in line with the SBV's directions. Specifically, state-owned commercial banks and wholly foreign-owned banks have generally reduced their rates by 0.5 percentage points, while joint-stock commercial banks have made reductions of approximately 0.5–0.7 percentage points. These adjustments provide an important basis for commercial banks to further reduce lending rates in line with the directions of the Government, the Prime Minister, and the SBV.
As for actual deposit rates, the average interest rate on newly mobilized deposits in late October 2026 decreased by approximately 0.4 percentage points compared with mid-October 2026.
Similarly, the average interest rate on newly issued loans in late October 2026 fell by approximately 0.2–0.5 percentage points compared with mid-October 2026.
The Deputy Governor also reported that more than 20 banks had announced preferential credit programs for production and business activities and priority sectors, offering lending interest rate reductions of 1.5–2 percentage points.
To further support liquidity and funding for credit institutions, in addition to continuing to use monetary policy instruments such as open market operations, refinancing and short-term foreign currency–Vietnamese dong (VND) swaps, the SBV announced on November 3 the introduction of six-month foreign currency–VND swap operations for credit institutions. This measure is intended to provide credit institutions with a relatively longer-term source of VND funding. It will help improve VND liquidity across the credit institution system, thereby contributing to lower market interest rates and supporting the achievement of ambitious economic growth targets.
According to the Deputy Governor, in the coming period, the SBV will continue to closely monitor global and domestic economic developments and flexibly manage monetary policy to help control inflation, maintain macroeconomic stability and support sustainable economic growth.
Accordingly, the SBV will continue to conduct open market operations flexibly in line with monetary policy objectives and provide timely liquidity support to credit institutions.
Overview of the Government’s regular press conference for October 2026
The SBV will continue to closely monitor domestic and international market developments and manage the exchange rate flexibly in line with market conditions. It will also coordinate monetary policy instruments to stabilize the foreign exchange market, contribute to macroeconomic stability, control inflation and support economic growth.
The SBV will further implement credit management measures in line with macroeconomic developments and the economy's capacity to absorb capital, with a view to promoting economic growth, controlling inflation and ensuring the safety of banking operations. Credit institutions will be directed to ensure safe and sound credit growth, channel credit towards production and business activities, priority sectors and key drivers of economic growth, and continue implementing credit programs in accordance with the Government's and the Prime Minister's directions. At the same time, credit to potentially risky sectors will be closely monitored and controlled. Digital transformation will be further promoted in credit approval processes to facilitate individuals' and businesses' access to bank credit while ensuring prudent and safe lending.
Regarding interest rate management, the SBV will continue to direct credit institutions to resolutely implement measures to reduce interest rates. Appropriate measures will be taken against credit institutions that fail to comply with the directions of the Government, the Prime Minister, and the SBV. The SBV will also continue to implement measures to provide liquidity and funding support to credit institutions, thereby helping to reduce market interest rates.
Minh Khang