Vietnamese banks slash service fees in economic boost

BIDV cut nine service fees whilst Military Bank reduced 16.

Vietnamese banks have cut a number of service fees in compliance with the government directive to improve the country's corporate climate which gave the country the necessary boost in the ease of doing business rankings, reports Viet Nam News. 

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Central bank deputy governor Đào Minh Tú urged banks to step up financial support schemes to enterprises and individuals who find it challenging to access credit for their growth requirements.

In response, Bank for Investment and Development of Vietnam (BIDV) has either reduced or totally cut a total of nine service fees in the period between 2016-2018 including charges for money transfers and registration and annual fees for services from BIDV online, Bank Business, BIDV Bank Plus and BIDV Smartbanking.

Military Bank also reduced fees on 16 service fees related to lending, cards, money and remittance transfers whilst Techcombank scrapped money transfer fees for individual and institutional customers.

The State Bank of Vietnam (SBV) has also made a number of administrative reforms including simplified lending procedures and reduced rates and service fees to lend support to commercial banks who in turn will provide credit for cash-strapped businesses. This is part of the government's master development plan to restructure the banking sector and enhance the competitiveness of local lenders. 

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Against industry-wide efforts, Vietnam has made considerable headway in the ease of doing business index by the World Bank after rising by five points on a year-on-year basis. The country's score on the access to credit subcategory also boosted Vietnam's business environment score by 14 nothces to 68th place.