Vietnam average lending rates rise to 10.7% in August

The State Bank of Vietnam reported that the average lending rate for August reached 10.7% per annum, marking a 0.2 percentage point increase from the previous month and an increase of approximately 3 percentage points compared to one year ago.

While state-owned commercial banks such as BIDV and Vietcombank reported average lending rates between 7.4% and 7.6%, private banks showed higher variations, with some ranging from 8.4% to 12%. Short-term lending rates for priority sectors, including agriculture and exports, reached the 4% ceiling regulated by the State Bank.

Deposit rates have also risen, with 6-to-12-month terms reaching 8% and terms exceeding 24 months hitting 8.1%. Analysts suggest banks are shifting their lending structure toward medium and long-term loans as floating interest rates for many customers remain high, between 12% and 14%. This trend persists despite government requests for banks to reduce costs and stabilize interest rates to support businesses and citizens.