He made the remarks at a meeting in Ha Noi on October 19 between the central bank and 46 commercial banks, held after the SBV issued Official Dispatch No. 9608/NHNN-CSTT, urging credit institutions implement measures to support the economy, with a focus on reducing lending rates while safeguarding banking system stability.

The Governor stressed that a sound banking system and macroeconomic stability are essential to achieving double-digit economic growth. As of late last week, deposits had risen 11.22% while outstanding credit had increased 11.44%. The rapid expansion of credit had left a substantial gap between lending and deposit mobilisation in Vietnamese dong, although it had narrowed from nearly 2 quadrillion VND (77.2 billion USD) to below 1.5 quadrillion VND.

The governor said the SBV will continue supporting credit institutions in addressing difficulties but not sacrifice system safety. Interest rate management should therefore combine lower funding costs with reduced operating expenses, profit-sharing and measures to curb unhealthy competition for deposits.

He noted that high deposit rates would make lending rate cuts difficult. Reductions should not be applied uniformly but should target the right borrowers and priority sectors. Both existing loans and new credit facilities should be considered to ease businesses’ financial burdens and improve access to capital.

Under the SBV’s latest directive, credit institutions are required to cut listed deposit rates by at least 0.5 percentage points per year for terms of six months or longer, while seeking to reduce lending rates by 1.5–2 percentage points per year for production, business and priority sectors. Adjustments must reflect each bank’s financial capacity.

Several banks have begun implementing the measures. The Loc Phat Viet Nam Bank (LPBank) reduced deposit rates across terms of one to 36 months on October 19. Viet Nam Thuong Tin Commercial Joint Stock Bank (VietBank) cut online deposit rates by 0.5 percentage points for terms of six to 36 months.

The Asia Commercial Bank (ACB) said it will lower deposit rates from October 20 and offer businesses preferential loans with rates reduced by 1.5–2 percentage points per year. An earlier ACB programme offering a one-percentage-point lending rate reduction had disbursed around 5 trillion VND.

Meanwhile, the Viet Nam Bank for Agriculture and Rural Development (Agribank) began offering lending rates up to two percentage points below its usual rates from October 19, focusing on priority sectors and production and business customers. Its 70-trillion-VND preferential credit programme for small and medium-sized enterprises and priority sectors will run from August 2026 to 2028.

The Bank for Investment and Development of Viet Nam (BIDV) launched a preferential credit programme on October 15, with rates starting at 6% per year, depending on loan terms and sectors.

Vietcombank Chairman Nguyen Thanh Tung also pledged to cut lending rates by at least two percentage points by the end of this year. He noted that small and medium-sized enterprises account for around 98% of Vietnamese businesses but hold only about 20% of total outstanding credit.

The measures align with the Government’s efforts to lower borrowing costs and direct credit towards productive activities, while controlling lending to sectors with potential risks. Their effectiveness will depend on actual rate reductions, businesses’ access to capital and the banking system’s ability to maintain stability.