The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) pioneered in reducing interest rates by reducing interest rates for loans in Vietnamese dong for existing corporate and individual customers - with a 1 percent reduction for Vietnamese dong loans in the last two months of 2022, applying from November 1, 2022, to December 31, 2022.
Mr. Nguyen Viet Cuong, Deputy General Director of Vietcombank, said that approximately 175,000 customers enjoyed the reduced interest rates of more than VND500,000 billion, accounting for nearly 50 percent of the existing loan balance at Vietcombank. However, Vietcombank's policy of reducing interest rates does not apply to securities loans, real estate business loans, and mortgage loans of valuable papers.
Similarly, the Vietnam Bank for Agriculture and Rural Development Agribank has also announced a reduction of interest rates to support customers to restore and develop production and business from November 1 to December 31, 2022. Specifically, with outstanding loans arising in December 2022, Agribank will reduce the interest rate up to 20 percent compared to the applicable interest rate.
In addition, corporate and individual customers with outstanding loans affected by the Covid-19 epidemic may have their debt repayment terms rescheduled, interest exemption or reduction, and keep the same debt group. Those asking for loans for petroleum business are also eligible for the policy of reduced interest rates.
Agribank estimates that about VND2,000 billion was saved to help reduce interest rates for 2.2 million customers.
Private commercial banks such as ACB have also announced that from December 6, 2022, to January 31, 2023, individuals and businesses that currently have loans and have transactions at the Asia Commercial Bank (ACB) will enjoy a reduction in interest rates of 1 percent a year. ACB is preparing a credit line of VND4,000 billion with a preferential interest rate reduced by 1 percent a year to disburse loans.
Recently, HDBank also announced that from November 1 to December 31, 2022, it will reduce lending interest rates up to 3.5 percent a year for individual and corporate customers with the interest rate reduction amounting to VND120 billion.