Vietnamese Banks Compete for Deposits as Rates Rise
This Aveluro analysis covers ACB on HOSE in the Banks sector. The classified event type is sector sentiment, with positive sentiment and a deterministic market-impact score of 4.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from VnExpress - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Vietnamese banks are competing aggressively for deposits, with customers bargaining for higher interest rates and banks raising promotional rates to retain funds. This trend, driven by strong credit growth and infrastructure financing needs, is pressuring funding costs for listed banks like ACB (HOSE) and BID (HOSE).
Key Facts
- Customers are bargaining for deposit rates as high as 8.5% per year, according to a bank teller in Hà Tĩnh.
- One bank branch raised promotional deposit rates to about 8% per year, roughly 2 percentage points above its standard listed rate.
- A customer with a VND 1 billion savings account switched banks after receiving multiple offers from bank employees.
- Credit growth has outpaced deposit growth since 2022, according to ACB’s Director of Financial Markets, Huỳnh Duy Sang.
- Large infrastructure projects and high economic growth targets are increasing bank funding needs.
- ACB’s leadership says the current rate hike cycle differs from 2022, when it was driven by systemic liquidity risk; now it reflects sustained capital demand.
- Deposit mobilization is diverging: small and mid-sized banks are seeing double-digit deposit growth, while some large banks are lagging.
What Happened
Vietnamese banks are in a fierce competition for deposits, with customers increasingly leveraging their bargaining power to secure higher interest rates and perks. A retail customer in Hà Nội, Nguyễn Hạnh, described receiving calls late into the evening and offers of transportation to the bank, ultimately moving her near-VND 1 billion savings to a smaller bank offering better rates.
Bank employees report that customers now negotiate rates “like shopping at a market,” with some demanding 8.5% annually and threatening to switch banks if not met. To retain clients, one branch of a state-owned bank raised promotional rates to about 8%, significantly above its standard listed rates. Some employees even spend their own money to keep customers and meet deposit targets.
Market Context
ACB closed at VND 22,200 on August 25, 2026, while BID closed at VND 36,700. Both are listed on HOSE. The deposit competition comes as credit growth outpaces deposit growth, squeezing liquidity. ACB’s leadership notes that the current rate environment is cyclical and unlikely to cool quickly, unlike the 2022 spike driven by systemic risk. The divergence in deposit growth between small and large banks suggests a shifting competitive landscape.
Strategic Significance
For long-term investors, the deposit war signals rising funding costs that could compress net interest margins across the banking sector. ACB and BID, as major players, may face pressure to raise deposit rates to retain funds, potentially impacting profitability. However, banks with strong franchise value and efficient funding structures may weather the cycle better. The trend also reflects broader economic dynamics, including infrastructure spending and credit demand, which could support long-term growth but at the cost of higher funding expenses.
What to Watch
- Q3 2026 earnings reports from ACB and BID for net interest margin trends.
- Deposit growth data for small vs. large banks to gauge competitive shifts.
- SBV policy signals on interest rates or reserve requirements.
- Infrastructure project disbursement updates that could sustain credit demand.
- Any regulatory measures to ease deposit competition.