As of November 17, the preferential lending interest rate offered by Vietcombank has been lowered from 15.2% to 13.5% per annum. This proves to be the lowest lending interest rate now available on Vietnam’s market.
Also, as of November 17, the Bank of Investment and Development of Vietnam (BIDV) has decided to slash their lending interest rate by 1%. The lowest lending interest rate offered by the bank is now 14% per annum, while the maximum short-term lending rate applied to all clients is 15% per annum.
This is the 7th time that BIDV has slashed the lending interest rate in the last four months.
Tran Bac Ha, Chairman of BIDV, said that the interest rate cut is the next step in the bank’s implementation of a package measure to stimulate production.
Ha said that the new interest rates would be applied not only to loans after November 17, but also to loans which have been contracted but not disbursed.
Prior to that, the state-owned Agribank had slashed the VND lending interest rates of loans to business households and small and medium enterprises to 14.4% and 15% per annum, respectively.
However, analysts have pointed out that only special clients can get benefit from the interest rate cuts.
For example, the clients who can enjoy the 13.5% per annum interest rate are the loyal clients of Vietcombank who are currently using services and comprehensive solutions provided by Vietcombank. These also include the enterprises operating in key business fields that can have positive impacts on economic development.
However, the moves by big banks and state-owned banks have also helped lower the interest rate ground, as joint-stock banks, though having made no moves, will certainly have to lower their interest rates to compete with other banks.
Having not announced a lending interest rate cut, on November 10, Lien Viet Bank said it would reserve VND 4 trillion to loan to small and medium enterprises to help the enterprises develop production and business.
The VND 4 trillion will be disbursed by Lien Viet Bank in Q4 2008 and 2009, of which VND 800 billion will be injected in forestry, agriculture, aquaculture, VND 1 trillion to industries and construction, VND 2 trillion in trade and services, and VND 200 billion will be loaned to enterprises in other business fields.
