Deposit interest rates have continued falling to below 8 per cent per year at all banks in Việt Nam as the State Bank of Việt Nam (SBV) aims to maintain a stable macroeconomic landscape and promote lending.

A survey conducted by Việt Nam News found that nearly 20 commercial banks have lowered their deposit interest rates by an average 0.2 per cent per year in July, with ten banks reducing their rates by 0.5 per cent to 0.8 per cent per year.

The highest listed interest rate for a 13-month deposit is 7.8 per cent per year at VietBank and SaigonBank.

Other private banks offer rates ranging from 7 per cent to 7.7 per cent per year for a 12-month term.

State-owned banks and private banks such as TPBank, VPBank, LPBank, Techcombank, DongABank, ACB, SeABank, Sacombank, VIB, and MB have the lowest deposit interest rates, ranging from 6 per cent to below 7 per cent per year.

The central bank has set the ceiling rate for deposit interest rates for terms shorter than six months at 4.75 per cent per year.

The constant rate cuts show banks’ efforts to reduce deposit interest rates and may lead to further cuts in lending rates.

The State Bank of Việt Nam (SBV) has continuously asked credit institutions to minimise costs and stabilise lending interest rates to support business recovery and development.

The central bank set this year’s credit growth target for banks at 11 per cent, but total outstanding loans in the economy increased by 3.36 per cent as of June 15 compared to the end of 2022.

However, this growth rate is slower compared to previous years. — VNS