State-owned BIDV, Vietnam's second largest lender by assets, said it would lower interest rates for exporters, agricultural producers and small companies by 0.5 percentage points starting December 19.
The new rates of between 14.5 percent and 15.5 percent will be offered for short-term dong loans of no more three months, the bank said. Exporters and companies affected by natural disasters are eligible for the lowest lending rates.
This would be the fifth consecutive rate cut by BIDV in four months.
A survey by Thanh Nien found that many other lenders in the country are still offering loans at 17-19 percent, with some banks even charging more than 20 percent.
Prime Minister Nguyen Tan Dung said last month that the government aims to rein in inflation next year so that interest rates can be lowered to support businesses.