Vietnam Orders Strict Action Against Banks That Fail to Cut Lending Rates
In a resolution issued on November 6, Vietnam’s government directed the State Bank of Vietnam to press financial institutions to lower lending rates for production and business activities, investigate violations and unfair interest rate competition, and monitor real estate companies’ outstanding loans and ability to repay debts when due.
On November 6, 2026, Vietnam’s government issued Resolution No. 353/NQ-CP on its regular October meeting. Prime Minister Lê Minh Hưng signed the resolution on behalf of the government, directing the State Bank of Vietnam to coordinate monetary policy, credit growth and banking system safety, and to step up inspections of compliance with lending rate directives.
Vietnamese Prime Minister Lê Minh Hưng chairs the government’s regular October 2026 meeting.（VietVance）
The resolution calls on financial institutions to implement measures to lower lending rates for production and business activities, priority sectors, exporters, and small and medium-sized enterprises. The State Bank of Vietnam must continuously assess implementation, promptly correct violations and take strict action against institutions that breach interest rate regulations, fail to comply with rate reduction directives or engage in unfair interest rate competition. It must also maintain the stability of interest rates, exchange rates and the value of the Vietnamese dong.
On lending, the government called for reasonable management of credit growth, directing funds toward production, business and areas that drive economic growth, making financing more accessible to businesses and residents, and promoting loans for social and rental housing. Financial institutions must continue implementing a VND 120 trillion credit program supporting social housing, workers’ housing and purchases of social housing by people under 35.
The government also called for stronger supervision of potentially risky areas, including real estate business loans and foreign currency loans. Financial institutions must monitor real estate companies’ outstanding loans and their ability to repay debts when due, with particular attention to companies restructuring their debt, while addressing nonperforming loans and limiting new ones.
The resolution also calls for action under the law against related-party interests, cross-ownership, concealed ownership and manipulation of banking operations. The State Bank of Vietnam must submit a draft decree amending regulations on the management of state foreign exchange reserves before November 15, 2026, improve rules governing the foreign exchange market, and investigate and penalize foreign currency hoarding and speculation.
Source: VietVance
