HO CHI MINH CITY: After a prolonged period at low levels, lending rates at banks have begun to edge up again, placing a heavier burden on borrowers, both individuals and businesses.
Amid ongoing tensions in the Middle East, which have driven up logistics and input costs for manufacturers, rising capital costs are further amplifying financial pressure, forcing many firms to stretch resources to sustain operations.
After one year at a preferential interest rate, a mortgage taken by Nguyen Thanh and his wife in Ho Chi Minh City’s Tan Phu Ward from a bank shifted to a floating rate in November 2025.
While the rate previously stood at 6.9%, it rose to 11.9% following the adjustment. Three months later, it was revised again to 12.8%.
The rapid increase in borrowing costs within a short period has raised concerns for the couple, especially as interest rates may continue to trend upwards.
The pressure is not limited to retail borrowers. Manufacturing enterprises are also facing similar challenges as lending rates are being adjusted upwards across the board.
Nguyen Dình Tung, general director of Vina T&T Group, said tensions in the Middle East are having serious repercussions for agricultural exports, particularly supply chain disruptions and sharp increases in maritime transport costs.
At the same time, businesses are also grappling with rising bank lending rates and higher input costs, he said.
The market had already recorded tighter credit limits by the end of 2025, and lending rates have continued to rise since early this year, he said.
Loans that previously carried an interest rate of around 6% are now at 8% and are likely to rise further.
Phung Quoc Man, chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (Hawa), said the interest rate pressure is brutal.
Lending rates for businesses are 11% to 12%, while previously they could borrow at 6% to 7%. Hawa officials said this poses a challenge to businesses.
Policymakers should consider appropriate measures to help enterprises access funds at more reasonable costs to ensure production and business activities remain unaffected, he said. — Viet Nam News/ANN
