Vietnam Banks Cut Lending Rates Up to 2.5% After PM Directive

Overview

Following a directive from the Prime Minister on August 13, 2026, multiple Vietnamese banks have launched large-scale preferential credit packages and reduced lending rates to support businesses. KienlongBank (KLI) cut rates by up to 2.5% per year for SMEs, while Sacombank (STB) reduced rates by 2% for export-import customers. State-owned banks Agribank, BIDV, Vietcombank, and VietinBank rolled out packages worth VND 50,000–70,000 billion each. Despite these moves, experts emphasize that improving credit access remains the primary challenge.

Key Facts

• KienlongBank (KLI) reduced lending rates by up to 2.5% per year for small and medium-sized enterprises.
• Sacombank (STB) narrowed its net interest margin to 0.79% and cut rates by 2% for export-import customers from August 13 to end-2026.
• Sacombank allocated VND 10,000–15,000 billion for priority sectors, household businesses, and FDI enterprises at expected rates of 8.5–9% per year.
• Agribank, BIDV, Vietcombank, and VietinBank each launched preferential credit packages of VND 50,000–70,000 billion, with rates at least 1% lower than standard.
• BVBank (BVB) set aside VND 2,500 billion at rates from 9.7% per year.
• Nam A Bank (NAB) reduced rates by 0.5–0.7% per year for production and business loans.
• NCB cut rates by 0.5% per year for both individual and corporate customers.

What Happened

On August 13, 2026, the Prime Minister met with the State Bank of Vietnam and credit institutions, urging the banking system to share responsibility with citizens and businesses by stabilizing interest rates, reducing lending rates, directing credit to the right sectors, and controlling risks. Immediately after, a wave of banks announced preferential credit programs.

KienlongBank led with a rate cut of up to 2.5% per year for SMEs, focusing on production and business activities. Sacombank reduced its net interest margin to 0.79% and cut rates by 2% for export-import customers, while also earmarking VND 10,000–15,000 billion for priority sectors. The four state-owned banks—Agribank, BIDV, Vietcombank, and VietinBank—each launched packages of VND 50,000–70,000 billion with rates at least 1% lower than usual. Other banks like BVBank, Nam A Bank, and NCB also joined the rate-cutting race.

Market Context

This policy-driven rate reduction comes amid a broader trend of monetary easing in Vietnam. The affected tickers trade on HOSE (STB, BVB, NAB) and HNX/UPCOM (KLI). As of August 14, 2026, STB closed at VND 72,300, BVB at VND 12,100, and NAB at VND 11,700. The banking sector has been under pressure from rising non-performing loans and slowing credit growth, making these rate cuts a double-edged sword: they may boost loan demand but also compress net interest margins.

Strategic Significance

For long-term investors, the key takeaway is that rate cuts alone may not be sufficient to revive credit growth. Experts like Nguyễn Kim Hùng, Vice Chairman of the Vietnam SME Association, argue that the real bottleneck is access to credit, not just its cost. He proposes a mechanism combining credit and fiscal policies to create additional cash flow for businesses. This suggests that banks with strong distribution networks and risk management, such as the state-owned giants, may benefit more from policy support than smaller banks. The focus on SMEs and priority sectors could also shift the competitive landscape.

What to Watch

• Actual disbursement of the announced credit packages in Q3 and Q4 2026.
• Changes in banks’ net interest margins in upcoming quarterly reports.
• Any follow-up policy measures from the State Bank of Vietnam, such as reserve requirement adjustments.
• Credit growth data for the banking sector in the coming months.
• Whether the proposed “credit within fiscal policy” mechanism is adopted by the government.