The State Bank of Vietnam has issued Official Document No. 9608, dated October 18, 2026, ordering banks to cut interest rates immediately. The move is important because it will change the returns on savings and the cost of borrowing for many Vietnamese households.

Banks must lower their publicly listed deposit rates by at least 0.5 percentage points per year for deposits of six months or longer, the SBV said. Savers can therefore expect slightly lower earnings on their fixed‑term accounts.

At the same time, the SBV requires banks to reduce lending rates, especially by 1.5‑2 percentage points per year for loans that support production, business activities and priority sectors. Borrowers in those categories should see cheaper loan repayments, which could encourage investment.

The central bank also strictly prohibits banks from starting deposit‑rate wars or any unfair competition that could threaten financial and monetary stability, according to the SBV. Banks that ignore the rules may face tighter credit‑growth limits for 2026 and lower limits in 2027, and they could be forced to meet higher prudential safety ratios.

Overall, the SBV’s measures aim to reinforce financial discipline, curb destabilising interest‑rate competition, and keep credit expansion from endangering the banking system. For ordinary people, the immediate effect will be lower savings returns but also cheaper loans for eligible projects.