Interest rates poised to fall further: paper

Local banks are expected to cut interest rates further sometime this year as deposits have been increasing while credit growth has remained sluggish, the Saigon Times Daily reported.
Local banks are expected to cut interest rates further sometime thisyear as deposits have been increasing while credit growth has remainedsluggish, the Saigon Times Daily reported.

A new round ofinterest rate reductions is just a matter of time as government bondyields and interest rates on the inter-bank market have kept falling. Asof April 22, the banking system reported a deposit growth rate of 3.09percent while its lending inched up a mere 0.62 percent, the Daily citedthe central bank as saying.

Furthermore, there have been no positive signs in banks’ cash flows, signaling yet another round of interest rate cuts.

InApril, the Hanoi Stock Exchange held 19 bond auctions, raising over13.2 trillion VND. However, the bond volume on the primary markettumbled 62 percent against the previous month.

Coupons hoveredaround 5.58-5.69 percent per annum for two-year bonds, 6.07-6.9 percentper annum for three-year debt papers, 7.12-7.8 percent for the five-yeartenor, and 8.7 percent for the 10-year term. They declined by 0.4 to0.41 percentage points per annum against March.

Since early thisyear, the State Treasury has mobilized over 80.6 trillion VND fromG-bond sales. The agency is the issuer of around 90 percent of G-bonds.

However,last week’s winning coupons of two, three and five-year G-bonds dropped10 to 20 basic points against the week before. G-bond investorsestimated that bond yields would move flat or drop slightly in the nextfew weeks.

Bond yields on the secondary market have stood at5.6-5.8 percent, 6.07-6.3 percent and 7.12-7.25 percent per annum fortenors of two, three and five years respectively.

Statistics ofbanks showed that credit institutions did not show up at auctions on theopen market for the second straight week before the national holidaysof Vietnam Reunification Day and International Labor Day that ended onMay 4.

Meanwhile, the central bank still offered 1 trillion VNDeach session with a coupon of 5.5 percent per annum for the seven-daytenor. The week before the holiday also saw no loans falling due on theopen market.

Given slow credit growth and huge surplus capital,banks have no demand to take out loans through open market operations orpurchase bonds.

Interest rates on the inter-bank market havebeen in decline for short tenors while long-term rates have remainedunchanged. The overnight rate has been 1.65 percent per annum, one weekat 1.9 percent, two weeks at 2.2 percent, dropping 0.15 to 0.3percentage points against the previous week respectively. Meanwhile, theone-month rate has stayed unchanged at 3.35 percent per annum.

Large banks have continued to offer loans on the open market with most transactions focusing on tenors below one month.-VNA

See more

Representatives of Halal markets are impressed by the beauty of Ha Long Bay, which is recognised by UNESCO as a World Heritage Site (Photo: Quangninh.gov.vn)

Vietnam studies nuances for successful Halal tourism

Muslim tourism has become a global trend and is playing an increasingly vital role in many countries' tourism sectors, said Dr. Trinh Thi Thu Ha, Rector of the Hanoi College of Commerce and Tourism.

Sun Group signs a MoU with Emirates, April 30, 2025. (Photo: Sun Group)

Emirates, Sun Group partner to promote tourism in Vietnam

The MoU was signed during the Arabian Travel Market (ATM) in Dubai by Orhan Abbas, Emirates’ Senior Vice President of Commercial Operations for the Far East, and Nguyen Vu Quynh Anh, Deputy CEO of Sun Group cum CEO of Sun Entertainment & Hospitality Group.

The groundbreaking ceremony for the second phase of construction on Vietnam’s first locally owned semiconductor chip factory. Photo courtesy of CT Semiconductor (Photo: VNA)

Construction of first locally-owned semiconductor factory begins

The groundbreaking ceremony, held in Binh Duong province, was attended by Deputy Prime Minister Nguyen Chi Dung, Deputy Minister of Science and Technology Pham Duc Long and leaders from universities, research institutions and international partners.

On April 15, Ho Chi Minh (HCM) City organises a ceremony to honour 50 outstanding businesses with leading brands and products of the city in celebration of the 50th anniversary of Southern Liberation and National Reunification (April 30, 1975-2025). (Photo: VNA)

HCM City’s leading enterprises embrace innovation in new era

Currently, HCM City's businesses contribute over 50% of the city’s GRDP, 67% of total investment, and 25% of national import-export turnover. Many of these enterprises have built strong domestic reputations and are increasingly succeeding in international markets.

Vinh Loc 2 industrial park in Ben Luc district, Long An province, which borders HCM City's Binh Chanh (Photo: VNA)

Production restructuring fuels demand in industrial real estate

With a solid foundation, increasing investor confidence, and strategic government support for sustainable and high-tech development, Vietnam’s industrial real estate market is well-positioned to become a regional leader in the era of sustainable prosperity.

Illustrative image (Photo: thoibaonganhang.vn)

Vietnamese gov’t approves two-year trial of P2P lending

Under the pilot, only P2P lending companies licensed by the State Bank of Vietnam (SBV) will be allowed to operate. Foreign banks are excluded from participation. While credit institutions and fintech firms may join the trial, participation does not guarantee future compliance with business or investment regulations once formal laws are enacted.

Processing dragon fruit for exports (Photo: VNA)

Overseas Vietnamese help Vietnamese products go global

In 2016, approximately 4.5 million Vietnamese were residing in 109 countries and territories. Today, the figures have risen to over 6 million and more than 130, respectively. Once focused on small-scale trade, many OV entrepreneurs now own major retail centres and operate extensive wholesale networks, boosting the availability of Vietnamese products abroad.

Illustrative image (Photo: VNA)

PM orders fast-track construction of Lao Cai - Hanoi - Hai Phong railway

The Minister of Construction was asked to work closely with local authorities to hasten land clearance, compensation, resettlement, site surveys, and the drafting of a feasibility study, which must be completed by June 2025, setting the stage for the project's groundbreaking on December 19, 2025.

LNG import operations at Thi Vai terminal. (Photo: VNA)

Vietnam cuts LNG import tariff to boost clean energy transition

The Vietnamese Government has reduced the preferential import tariff on liquefied natural gas (LNG) from 5% to 2% under Decree No. 73/2025/ND-CP, issued on March 31. The move marks a key step in accelerating the country’s shift from fossil fuels to cleaner energy.