Vietnam Deposit Rates Rise to 7.8% as Lending Rates Stabilize at 10.5%

Overview

Vietnam’s banking system saw deposit rates continue their upward trend in July, with the average 6-12 month rate reaching 7.8% per annum, up 0.2 percentage points. Meanwhile, lending rates stabilized at 10.5%, breaking a streak of increases that began late last year. The State Bank of Vietnam (SBV) has stepped in with liquidity injections via open market operations (OMO) and foreign exchange swaps to support market stability, a move that could influence the trajectory for banks like ACB and HDB.

Key Facts

• Average deposit rate for 6-12 month terms rose to 7.8% per annum in July, up 0.2 percentage points from the previous month.
• Lending rates held steady at 10.5% per annum, halting a rising streak that started in late 2025.
• Deposit rates have increased by approximately 1.5 percentage points since the start of the year.
• Some private banks, including NCB, MBV, and Vikki, are offering 8.5-9.2% for 6-month deposits, with negotiated rates up to 9.5%.
• Preferential short-term lending rates for priority sectors remain at 3.9%, near the 4% cap.
• Big4 banks are lending at average rates of 6.1-8.5%, while private banks like HDBank, SeABank, and ACB charge 9.28-10.4% for medium and long-term loans.
• The SBV has injected over USD 18.6 billion via OMO and provided approximately USD 3 billion through FX swaps.

What Happened

According to data released by the State Bank of Vietnam, deposit rates continued to climb in July, with the average rate for 6-12 month terms reaching 7.8% per annum, up 0.2 percentage points. This marks the tenth consecutive month of increases. In contrast, lending rates have stabilized at 10.5% per annum, ending a period of sustained growth from 8.9% at the end of last year.

The SBV has been actively managing liquidity, injecting funds through OMO (at times exceeding USD 18.6 billion) and conducting FX swaps to provide about USD 3 billion to the system. These measures aim to stabilize interbank rates and support overall market conditions. At a recent meeting with the SBV and credit institutions, Prime Minister Lê Minh Hưng urged banks to cut costs and reduce lending rates to share burdens with businesses and individuals.

Market Context

ACB (HOSE) closed at 21,650 VND on August 18, 2026, while HDB (HOSE) closed at 26,950 VND. The banking sector has been under pressure from rising funding costs, which could compress net interest margins. The stabilization of lending rates, coupled with continued deposit rate increases, may signal a peak in the deposit rate cycle, but near-term margins remain tight. The SBV’s liquidity support is a positive signal for the sector, potentially easing funding pressures.

Strategic Significance

For long-term investors, the key takeaway is the potential stabilization of deposit rates, which could alleviate margin pressure for banks like ACB and HDB. The SBV’s proactive liquidity management suggests a lower risk of abrupt rate hikes, supporting a gradual decline in rates. However, banks with higher reliance on market funding may face continued cost pressures. The government’s push for lower lending rates could also impact profitability, making operational efficiency and asset quality crucial differentiators.

What to Watch

• SBV’s next monetary policy actions, including further OMO or FX swap operations.
• Q3 2026 earnings reports from ACB and HDB, focusing on net interest margins.
• Any changes in the prime minister’s directives on lending rate reductions.
• Deposit rate trends in August and September, particularly whether the 7.8% level holds or rises.
• Regulatory updates on the short-term lending rate cap for priority sectors.