In response to the State Bank of Vietnam (SBV) calling for lower lending interest rates, many banks have announced cuts.

The Vietnam Maritime Bank (MSB) has announced a program to cut lending interest rates with a limit of up to VND2 trillion ($84 million). The program targets individual businesses and customers applying for a loan from MSB for the first time and working in priority fields, including aviation, transportation, warehousing, tourism, accommodation, catering, and education and training services.

As of December, preferential interest rate were cut from 2.5 per cent to 3 per cent per annum compared to normal rates on medium and long-term loans.

VIB had previously announced that loan interest rates will be cut by up to 1.5 per cent from October 10 to June 30, 2023 for individual customers and small and medium-sized enterprises (SMEs) seeking loans for business investment.

MB has also cut its loan interest rates from 0.5 to 1 per cent per annum for borrowers in priority areas and those conducting trade.

According to the Vietnam Bankers Association, 12 banks have committed to cutting loan interest rates from 0.5 to 3 per cent per annum to help businesses and individuals, totaling VND3.312 trillion ($140 million).

Analysts believe loan interest rates will soon cool down given the management of the SBV and moves by commercial banks.