Official Dispatch No. 9736: Banks must reduce average deposit interest rates for terms of 6 months or longer by at least 0.5% per annum

In Official Dispatch No. 9736/NHNN-CSTT, the State Bank of Vietnam (SBV) requires commercial banks to take decisive action to achieve substantive reductions in deposit and lending interest rates, thereby supporting business and production development.

Under Section 2 of the Official Dispatch, commercial banks must reduce the average deposit interest rate applicable to new transactions with terms of 6 months or longer by at least 0.5% per annum during the remaining months of 2026. The reduction is determined by comparison with the respective commercial bank’s interest rate for the reporting period specified in the Official Dispatch. This requirement specifies the minimum reduction, the applicable terms and the transactions covered.

Alongside this requirement, under Section 1, the SBV requires commercial banks to direct all units throughout their systems and across all sales channels to take decisive action to achieve substantive reductions in deposit and lending interest rates. Implementation must comply with the directions of the SBV Governor at the meeting held on October 19, 2026, and Official Dispatch No. 9608/NHNN-CSTT dated October 18, 2026.

To monitor implementation results, Section 3 of the Official Dispatch provides that the SBV shall monitor commercial banks’ average interest rates applicable to new transactions during the remaining months of 2026. The data shall be monitored through the statistical reporting system prescribed in Official Dispatch No. 6194/NHNN-DBTK dated August 7, 2023, regarding the required reporting of interest rates applicable to new transactions.

If a commercial bank fails to comply with the directions, the SBV shall take strict enforcement action, including considering reducing its credit growth target or assigning it a lower credit growth target.

The SBV requires commercial banks to vigorously perform the assigned tasks and be held accountable before the law, the SBV Governor and competent authorities.