The State Bank of Vietnam (SBV) has cut interest rates up to 100 basis points, marking the first rate cut for the bank after inflation lifted interest rates twice last year. The move was pushed by a request from the Prime Minister to stimulate economic growth, but it could come at the cost of higher inflation. The World Bank has lowered its GDP growth forecast for Vietnam from 6.7% to 6.3%, citing higher inflation and lower demand in key markets as factors. Meanwhile, trade figures for February show a modest increase on January’s figures, with a notable increase in exports to the US. Vietnam’s tourist visa requirements may be relaxed to improve the recovery of the country’s tourism sector. In investment news, Japan’s Sumitomo Mitsui Financial Group is set to purchase a 15% stake in VP Bank for USD 1.4bn, while Dutch chip maker ASML is reportedly considering Vietnam as an alternative semiconductor chip production location. German firm Pepperl+Fuchs is also building a new plant in HCMC’s Tan Thuan Export Processing Zone with the help of Deutsche Bank funding. Additionally, a subsidiary of Japan’s Sumida Corporation is expanding its Vietnamese factory to produce inductors, reactors, and transformers for industries from consumer electronics to health care.