Average deposit and lending rates down 0.15% and 0.25%, respectively, this year as of January 31.

Credit targeting production and trade sectors that contribute to GDP growth.

2.8 million people have used the Mobile Money service to date.

Rate to come down to 5.5%.

The State Bank of Vietnam (SBV) has approved planning for the banking sector to implement the national strategy to develop the digital economy and digital society to 2025 and orientation to 2030. The plan sets out eight specific tasks, including developing digital payments towards financial inclusion; promoting non-cash payments; increasing the proportion of online activities so they account for at least 50 per cent of the banking sector’s activities; and developing and using digital platforms, digital data, and digital businesses, etc.

The State Bank of Vietnam (SBV) has decided to increase the refinancing interest rate, the rediscount rate, the ceiling interest rate for deposits under six months, and lending rates for priority sectors by 1 per cent. It also said it will closely monitor domestic and international market developments to quickly and flexibly manage monetary policy.

In the money market last week (September 19 to September 23), the State Bank of Vietnam (SBV) continued to use open market operation tools to maintain sufficient liquidity in the system and indirectly move on the interbank interest rate level. At the end of the week, the central bank net withdrew VND34.6 trillion ($1.46 billion) through the open market channel and VND23 trillion ($967 million) through foreign currency sales. It recently increased some operating interest rates, after nearly eleven years since the last increase. Rates such as discount rates and refinancing rates were raised by 1 per cent.

According to VnDirect Securities, the State Bank of Vietnam (SBV) has decisively and promptly responded to changes in the international financial market. However, an increase of 100 basis points in the operating interest rate was unexpected, and higher than the forecasted 50 basis points. VnDirect believes the rate may increase by an additional 30-50 points during the closing months of the year. The 12-month deposit interest rate at commercial banks will rise to 6.1-6.3 per cent per annum by end-2022, which is still lower than the pre-pandemic 7.0 per cent per annum.

Central bank making liquidity moves in early 2022.

Vietnam’s non-cash payment ecosystem has witnessed the first cooperative deal between the National Payment Corporation of Vietnam (NAPAS), under the State Bank of Vietnam (SBV), and 13 Vietnamese banks to introduce domestic credit cards. This confirms the increasing popularity of non-cash payments in the country.