Vietnam: Dong deposit interest rates up to 20%, lending rates at 27%

by **ADMIN** Thu Jun 30, 2011 7:50 am

The dong deposit interest rates rose to about 17-18% for most terms, even up to 19-20% p.a., while lending interest rates mostly range between 18% p.a. and 22% p.a. and even hit 25-27% p.a., according to a report by the NA’s Economic Committee.

The dong deposit interest rates rose to about 17-18% for most terms, even up to 19-20% p.a., while lending interest rates mostly range between 18% p.a. and 22% p.a. and even hit 25-27% p.a., the state-run online newspaper VnEconomy cited data from a recent report of National Assembly’s Economic Committee at the 41th NA’s meeting.

Earlier, another Government’s report revealed that the average dong deposit interest rate is standing at 15.5% p.a., up 3% from the end of 2010; while lending interest rates are about 18.7% p.a., up 3.4% from the end of 2010.

Lending interest rates for non-manufacturing sectors range between 22% p.a. and 25% p.a., while those for production are about 19.2% p.a., the Government report read.

Truong Thi Mai, Chairwoman of the National Assembly’s Committee for Social Issues said the Economic Committee’s figures are likely more practical, although the Government only used the word “average” when mentioning about interest rates.

Also at the meeting, the NA’s Economic Committee warned about rising bad debts, credit risks and restricted capacity of the banking system.

The Government should adjust credit growth and disburse investment from the state budget gradually throughout the year to avoid too much cashflow at the year-end peak season which may cause inflation to heat up.

http://vietnambusiness.asia/dong-deposit-interest-rates-up-to-20-lending-rates-at-27/