The State Bank of Vietnam (SBV) plans to keep the current regulatory interest rate for at least the first six months of this year as the economy is on a stable trajectory and exhibiting a number of positive signs, according to SBV Deputy Governor Dao Minh Tu.

Addressing a conference in Hanoi on February 20 to promote credit to support businesses and boost economic growth, Mr. Tu said the central bank is encouraging credit institutions to cut costs, simplify procedures, and increase the application of technology and digital transformation in the credit granting process in order to reduce lending interest rates.

The average deposit and lending interest rates in Vietnam have continued to decline, with respective falls of 0.15 per cent and 0.25 per cent as of January 31 compared to the end of 2023, according to the SBV.

Mr. Tu noted that the banking sector plans to increase the credit program for businesses in the fields of forestry and fisheries by VND13 trillion ($530 million). All of the program’s capital, totaling VND15 trillion ($612 million), has been disbursed.