Vietnam’s borrowing costs have surged, putting pressure on both companies and families. Understanding these trends helps you see how your own loans or business plans might be affected.

State Bank of Vietnam data show the average lending rate climbed to 10.7 % in August, 0.2 percentage points higher than July and roughly three points above the level a year earlier. At the same time, personal loans now cost 17‑18 % a year, car loans exceed 19 %, and business loans sit at 13‑14 %.

Small‑ and medium‑sized enterprises are feeling the squeeze. SME owners say loan rates above 12‑13 % make it difficult to generate enough profit to cover interest payments, and many report that credit has become hard to obtain.

In response, Deputy Prime Minister Nguyen Van Thang urged banks to cut lending rates by 1.5‑2 percentage points for businesses and priority sectors. He asked the State Bank of Vietnam to act quickly so that borrowing costs fall without destabilising the financial system.

Some banks have already moved. BIDV launched a preferential lending program that offers rates as low as 6 % for production and business activities, while Vietcombank pledged to reduce its lending rates by at least two percentage points each year through 2026.

If these cuts materialise, households and firms could see cheaper credit, easing the current burden of high interest payments. Monitoring the government’s push will be essential for anyone planning new financing.