Banks in Vietnam are expecting an improvement in credit growth from the second quarter of 2024, especially now that loan interest rates have decreased, exports gradually recovered, and domestic consumption increased.

According to the Vietnam News Agency, the State Bank of Vietnam said that as of 31st January, deposit and loan interest rates had been cut down by 0.15% and 0.25% per year, respectively, compared to the end of 2023.

However, the central bank noted that credit growth in early 2024 was quite low compared to that in recent years. In January, credit decreased by 0.6% against the end of 2023.