Businesses expect stable interest rates in 2016

Interest rates decreased by about 40% compared to 5 years ago. But businesses are still concerned, as interest rates increased slightly in 2016. According to commercial banks, this happens seasonally and only for a short period.

Nguyen Duc Huong, Vice President, Lien Viet Post Bank said: The interest rate is not the issue, even if it’s increased slightly, it only applies to medium and long-term interest rates. Also these rates will fit with business rates. In my opinion, this is insignificant and remains in the control of the central bank of Vietnam.

Victoria Kwa Kwa, Country Director for Vietnam, World Bank said: According to the World Bank's view of Vietnam's economy, 2016 is a good year, and could be even better than 2015. Businesses have plans to expand their production, sales and confidence in the industry, and investors could also increase.

The stability of interest rates helps businesses gain confidence in planning their production. Therefore, businesses expect the interest rates to decrease or remain stable in 2016.