HA NOI — Commercial banks have followed this week’s move by the State Bank of Viet Nam to trim a percentage point off the prime interest rate by slashing various Viet Nam dong-denominated interest rates by as much as 2 percentage points, bringing average commercial lending rates down to between 15 and 18 per cent per year. State-owned banks – including Vietinbank, Mekong Housing Bank, the Bank for Investment and Development of Viet Nam (BIDV), Agribank and Vietcombank –are now charging borrowers rates of around 15-16 per cent per year.

    When one sees Pham Viet Dinh’s long fingers rhythmically working with a needle and thread, it’s hard to believe that he is already 77 years old. The man looks younger and stronger than his age with his bright eyes, close-cropped snow-white hair and long white beard.