According to the fourth quarter socio-economic situation report of the General Statistics Office (GSO), as of December 21, 2023, total means of payment increased by 10.03% compared to the end of 2022 (same period last year increased by 3.85%); capital mobilization of credit institutions increased by 10.85% (same period last year increased by 5.99%).

Along with that, the economy's credit growth reached 11.09%, lower than the level at the same time last year of 12.87%. Previously, according to data published from the State Bank of Vietnam (SBV), as of December 20, credit increased by 10.85% compared to the end of 2022.

According to the General Statistics Office, in 2023, credit institutions have implemented policies to ensure safe, healthy and effective operations of credit institutions, maintained stable deposit interest rates and reduced lending interest rates, promptly responding capital needs of people and businesses.

The State Bank of Vietnam has adjusted interest rates down by 0.5%-2% p.a., and deposit and lending interest rates have dropped sharply in the last months of the year. However, the situation of excess capital at commercial banks continues due to low demand for credit in the economy.

That leads to a sharp reduction in deposit interest rates at the end of the year, contrary to the trend of previous years because this is the time when banks will have to increase deposit interest rates, deploy promotional programs to attract capital and meet the credit needs of people and businesses.

Currently, the average lending interest rate of domestic commercial banks for new and existing outstanding loans ranging from 8.3-10.5% p.a.; The average short-term lending interest rate in Vietnamese Dong for priority sectors is about 3.8% p.a.

The central exchange rate in 2023 has basically remained stable thanks to appropriate exchange rate management by the State Bank, flexible foreign currency intervention, limiting pressure on abnormal fluctuations in market exchange rates, contributing to stabilizing and meeting legal foreign currency needs. As of December 25, 2023, the central exchange rate is at VND 23,895/USD, an increase of 1.2% compared to the end of 2022.

Kylie Nguyen