This is not merely a short-term policy response, but reflects a systematic adjustment aimed at stabilising the interest rate level, easing liquidity pressure and creating room for credit to flow into the economy.

However, behind the immediate “wave” of interest rate cuts are issues related to capital balance, inflation expectations and enterprises’ capacity to absorb capital, which will need to be considered more thoroughly.

A signal of policy consensus

The meeting on implementing banking tasks held by the State Bank of Viet Nam in early April can be seen as an important highlight in monetary policy management for the second quarter of 2026. The fact that a series of commercial banks subsequently adjusted deposit rates downwards shows a high level of consensus within the system, especially amid continued pressure in capital mobilisation competition.

In fact, throughout the first quarter of 2026, deposit interest rates showed signs of remaining locally high in certain long-term tenors, reflecting banks’ need to secure medium- and long-term liquidity. However, with clear messages from the government and flexible regulation by the State Bank of Viet Nam, this trend is now reversing. To date, 30 domestic commercial banks have announced reductions in deposit rates, with common cuts ranging from 0.1 to 0.5 percentage points per year.

A representative of SeABank said the latest reduction in deposit rates is part of SeABank’s commitment to contributing to economic recovery and promoting sustainable growth, while harmonising the interests of business development and support for customers.

Creating room to lower capital costs for the economy

Pham Chi Quang, Director of the Monetary Policy Department under the State Bank of Viet Nam, said that recently, the international situation has become complicated and unpredictable. Escalating geopolitical and military tensions in the Middle East have pushed oil prices higher, placing pressure on inflation in many countries, while domestic capital demand remains high in order to achieve economic growth targets. This has posed numerous challenges for monetary policy management and banking operations. In capital mobilisation and lending, some commercial banks have competed aggressively for deposits, thereby pushing up both deposit and lending interest rates.

VPBank General Director Nguyen Duc Vinh also said that the rise in deposit rates in the first quarter was mainly due to liquidity pressure across the system. In addition, new regulations, such as requirements on compulsory reserves, have also increased banks’ capital costs.

Higher interest rates have their first and most direct impact on the business sector. Lam Thuy Ai, Vice Chairwoman of the Sai Gon Business Association, said one of the biggest challenges at present is the interest rate level. According to observations, lending rates are fluctuating at around 8-9% per year and tend to continue rising. If interest rates exceed 10% or move even higher, many enterprises will have to reconsider their financial strategies. When capital costs become too high, investing in production and business activities becomes less attractive than depositing money in banks to ensure safety.

According to experts, lowering deposit rates for medium- and long-term tenors will help banks gradually optimise input capital costs, thereby paving the way for reductions in lending rates in the coming period. “Lower deposit rates will create greater room for reducing lending rates, helping individuals and enterprises develop production and business activities, and contributing to the successful implementation of economic growth targets in line with the orientation of the Party and the government in the new period,” affirmed Vietcombank Deputy General Director Le Hoang Tung.

Lower deposit rates will create greater room for reducing lending rates, helping individuals and enterprises develop production and business activities, and contributing to the successful implementation of economic growth targets in line with the orientation of the Party and the government in the new period.

Vietcombank Deputy General Director Le Hoang Tung

However, experts say that lowering interest rates is necessary but not sufficient. What matters is ensuring that capital flows to the right destinations, at the right time and in line with the needs of the economy. More broadly, this wave of interest rate cuts should be placed in the context of restructuring the financial and banking system. Interest rates are only one variable; more important are the quality of capital allocation and the efficiency of capital use.

Therefore, together with lowering interest rates, it is necessary to promote synchronous solutions, such as completing the legal framework for handling bad debts, developing the capital market to reduce dependence on bank credit, increasing the transparency of enterprises’ financial information, and improving risk governance capacity among credit institutions.

In addition to adjusting interest rates, a SeABank representative said the bank will continue to implement synchronous solutions to optimise operating costs, improve operational efficiency, increase access to capital for individual and corporate customers, and continuously improve the quality of its products and services.

Similarly, at LPBank, alongside its interest rate policy, the bank will continue to channel capital into production, business and priority sectors under the direction of the government and the State Bank of Viet Nam, including information technology, supporting industries, green energy, high-tech agriculture, health care and education.

A representative of the State Bank of Viet Nam affirmed that in the coming period, the central bank will closely monitor developments in deposit and lending rates, as well as the publication of lending rates on banks’ websites. It will take appropriate monetary policy measures, stand ready to support liquidity for commercial banks, strengthen inspection, examination and supervision of banks’ implementation of the policies and directions of the government, the Prime Minister and the State Bank of Viet Nam on deposit and lending rates, and strictly handle violations in capital mobilisation and credit extension activities by commercial banks.