Vietnam is riding a wave of economic success after taking the crown of fastest-growing economy in Asia in 2022, with a very healthy 8% growth. The country is also enjoying low rates of inflation, averaging 3.3% for the first half of 2023.
This is proving to be positive news to Khanh Vu, deputy managing director at VinaCapital Fund Management. “We saw rates rise last year, but they have subsequently come down in recent months, with four policy rate cuts within the past three months,” he notes. “This has transmitted to bank deposit rates, which are down to around 7%. Lending rates are also down to around 8% to 9%, which will help support economic growth.”
