Lending interest rates are continuously decreasing.

The State Bank of Vietnam (SBV) stated that in the second half of 2011, lending interest rates in Vietnamese Dong (VND) were very high, commonly around 20-25% per year. These high lending rates pushed up borrowing costs, thereby impacting production and business activities.

Illustrative image/vtc.vn.

Currently, lending interest rates have returned to the levels of 2005-2006. Compared to the end of 2011, current lending interest rates have decreased by more than half, meaning that current rates are less than 50% of the rates at the end of 2011.

In the coming period, the State Bank of Vietnam will urge commercial banks to continue reducing interest rates on new and existing loans to further alleviate difficulties for businesses' production and operations. However, any interest rate reduction must be implemented based on agreement and consensus between the credit institution and the customer.

According to the People's Army Newspaper