The State Bank of Vietnam (SBV) has delivered cuts to its policy rate three times in less than three months, each time of 50 basis points, to assist the country’s economic growth via the credit channel.

The State Bank of Vietnam (SBV) announced it would cut the interest rate ceiling on deposits of under six months to 5% a year starting on 25 May.

Despite an overall export decline due to the shortage of orders, foreign direct invested (FDI) businesses still posted more than US$14 billion in trade surplus in the first four months, further affirming their role as the main growth driver of the economy.

Vietnam requires a proper and attractive investment policy and a friendly business climate in order to attract new foreign direct investment (FDI), especially high-quality FDI flows, heard a seminar held on May 15 in Hanoi.

Amid the fluctuation of the global financial market, the exchange rate in Vietnam has remained stable in the first four months of this year, and the Vietnam dong has been considered one of the most stable currencies in Asia, according to experts.

Banks have been steadily cutting deposit interest rates, which have reached around 8%, a move aimed at reducing lending rates to support businesses.

With Vietnamese goods making up only 2.7% and 3.3% in Japan and the Republic of Korea, respectively, there remains a wealth of opportunities open for Vietnamese exports to enter these promising markets, according to the Ministry of Industry and Trade (MoIT).

More than 110.6 trillion VND (US$4.7 billion) of public investment was disbursed in the first four months of this year.

The Vietnamese economy will record steady growth of 6.5% this year and 6.6% in 2024, according to a report released on April 26 by the Organization for Economic Co-operation and Development (OECD).