Vietnam’s monetary policy in the first half of 2024 has been characterized by a continued decline in deposit and lending interest rates, coupled with a flexible and proactive management of exchange rates. These measures have contributed to macroeconomic stability, with a positive impact on the insurance and stock markets.
As of June 24, 2024, there has been a 1.5% increase in capital mobilization by credit institutions compared to the end of 2023 (compared to a 3.68% increase in the same period last year). Concurrently, the economy’s credit growth reached 4.45%, surpassing the 3.83% growth rate from the previous year during the same period.
Throughout the first six months of 2024, the State Bank of Vietnam (SBV) maintained its policy interest rates, enabling credit institutions to access low-cost capital. This move also facilitated a harmonious balance between interest rates and exchange rates, aligning with market conditions, macroeconomic developments, and monetary policy objectives. Additionally, credit institutions were instructed to further reduce expenses to lower lending interest rates.
As of April 2024, the average deposit interest rates offered by domestic commercial banks ranged from 0.2% per annum for non-term and less-than-1-month term deposits to 6.9%-7.4% per annum for deposits with terms exceeding 24 months. The average lending interest rates for new and outstanding loans were 7.3%-9.5% per annum, while short-term lending interest rates for priority areas stood at approximately 3.6% per annum, below the SBV’s maximum short-term lending rate of 4% per annum. Credit risk management remained stringent, ensuring the safety of the system and focusing on economic growth drivers, including green credit, in line with Vietnam’s net-zero emissions commitment by 2050.
The central exchange rate has been managed with flexibility and synchronization with monetary policy tools to stabilize the foreign exchange market, curb inflation, and maintain macroeconomic stability. As of June 25, 2024, the central exchange rate stood at 24,253 VND/USD, reflecting a 1.62% increase compared to the end of 2023.
Latest Interest Rates at Agribank in February 2023: Highest Rate for 24-month Term
Interest rates for deposits at Agribank have further decreased in early February 2024 compared to January. Specifically, individual customers’ deposits are subjected to interest rates ranging from 1.7% to 4.9% per annum, while business customers’ deposits are subjected to interest rates ranging from 1.7% to 4.2% per annum.
Fighting Cross-Ownership: Impossible to “Take Tangibles to Treat Intangibles”
The recent amendment to the Credit Institutions Act, passed by the National Assembly during an extraordinary session, has introduced several measures to address cross-ownership, manipulation, and domination of credit institutions. However, it is challenging to “make the intangible tangible”! To prevent cross-ownership, it is crucial to enhance the effectiveness of inspections and supervision.
Latest Interest Rates from VietinBank in February 2024: Up to 5% per annum
According to the latest survey in February 2024, VietinBank offers the highest deposit interest rate of 5% per annum for personal deposits of 24 months or more with interest paid at maturity.
Avoid Out-of-Stock, Hoarding, and Disruptions in Supply Chain Leading to Price Surges
In line with the 2024 mission directive, the Government has set a goal to prevent shortages, hoarding, and disruptions in the supply chain that result in sudden price surges.
