Vietnam interest rates soar, borrower sentiments spiral down

In previous years, the demand for consumer loans always rose during the end-of-year festive season as more people bought homes, cars or home appliances. However, the high interest rates this year have kept consumers counting their cash.

Interest rates on consumer loans have risen to 18-22 percent in some commercial banks, with a 2-4 percent hike in the last two months alone.

In a country where annual per capital income is estimated at merely $1,200, such interest rates become roadblocks in public access to loans and ultimately, economic growth.

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