Deputy Governor of the State Bank of Vietnam Dao Minh Tu (Photo: VGP/Nhat Bac)

The loan interest rate for preferred borrowers is about 4.5%, down 2.5% from 2016. Mr. Tu told a government press conference on Tuesday: "Vietnam’s average loan interest rate is lower than the average rate of ASEAN +4. At the end of March, Vietnam’s inflation rate and Consumer Price Index were low and growth did not meet expectations, though it showed positive signs. Sector loans have increased 2.44%, compared to 1.3% last year. Stabilization remains a priority of Vietnam’s interest rate policy for both capital mobilization and loans."

Mr. Tu warned of impacts of the global economy. The price of raw material this year is expected to increase 30%. He said money will flow from the money market to bonds, stocks, and real estate.