Vietnam Lending Rates Hit 10.7% in August as Deposit Costs Bite

Overview

Vietnam’s average lending rate rose to 10.7% per year in August, up 0.2 percentage points from July and roughly 3 percentage points higher than loans disbursed a year earlier, according to State Bank of Vietnam (SBV) data. The increase reflects banks passing on higher deposit costs, a dynamic that shapes net interest margins at BIDV (BID), Vietcombank (VCB) and the banking coverage tracked by SSI Securities (SSI).

Key Facts

• Average lending rate: 10.7% in August, +0.2 percentage points month-on-month and about +3 percentage points year-on-year, per SBV data.
• State-owned banks BIDV and Vietcombank reported average lending rates of roughly 7.4-7.6%, while private lenders Eximbank, KienlongBank and MBV ranged 8.4-9.5%.
• A VnExpress survey found actual Big4 lending rates of 9-10.5%, with private banks reaching 12%.
• Maximum deposit rates for 6-12 month tenors hit 8%, and tenors above 24 months reached 8.1%, each up 0.2 percentage points from the prior month.
• Short-term lending to priority sectors (exports, agriculture, supporting industries, SMEs, high tech) touched the 4% regulatory ceiling for the first time in years.
• Average interest on bank bonds issued last month was 8.7%, according to VIS Ratings.
• The credit-deposit gap at times approached VND 2 quadrillion, forcing banks to compete for term deposits.

What Happened

The SBV’s newly published data show the average lending rate at 10.7% in August after a flat July, with the increase attributed to a chain reaction from higher deposit rates. State-owned banks BIDV and Vietcombank disclosed average lending rates of about 7.4-7.6%, while private banks including Eximbank, KienlongBank and MBV quoted 8.4-9.5%. A VnExpress survey, however, found actual pricing materially higher: 9-10.5% at the Big4 and up to 12% at private lenders, depending on tenor, purpose, collateral and credit history.

Deposit costs continue to climb. Maximum rates for 6-12 month tenors reached 8% and tenors beyond 24 months 8.1%, both up 0.2 percentage points month-on-month, with actual transactions exceeding published boards as banks add promotional rates for new customers or weekend “double day” deposits. Six-month rates sit around 8.5-9.3%, negotiated rates exceed 9.7% for 12-month deposits above VND 1 billion, and staff at some smaller banks cited close to 10% for amounts above VND 10 billion without early withdrawal. Banks are also paying up via certificates of deposit and bonds, with average bank bond yields at 8.7% last month per VIS Ratings. Lending rates have not cooled despite Prime Minister Lê Minh Hưng’s mid-August call for banks to cut costs and pass through lower borrowing costs.

Market Context

BIDV (BID) trades on HOSE at VND 35,750, Vietcombank (VCB) at VND 59,900 and SSI Securities (SSI) at VND 21,400, all as of 20 September 2026. The rate backdrop matters for the banking sector’s margin outlook and for securities firms whose margin lending economics depend on funding costs. SSI’s analysts note banks are shifting loan structures toward medium and long tenors as short-term demand softens, while home purchase lending has stalled even at banks with ample credit quotas, a trend consistent with floating mortgage rates of 12-14%.

Strategic Significance

The persistent gap between credit growth and deposit mobilization, at times near VND 2 quadrillion, is the core structural issue. Banks must defend net interest margins while funding costs stay elevated, which favors institutions with strong low-cost deposit franchises such as Vietcombank and BIDV over lenders reliant on wholesale or promotional funding. For SSI, higher rates raise the cost of margin financing and can dampen retail trading activity, while also supporting brokerage yields on cash balances. The policy tension is clear: government pressure to lower lending rates collides with banks’ need to protect profitability, and the first-ever use of the 4% priority-sector ceiling signals how tight the funding market has become.

What to Watch

• SBV monthly money and credit data for September, particularly the credit-deposit gap and average lending rate.
• Deposit rate boards and promotional programs at BIDV, Vietcombank and private banks for any sign of a peak.
• Third-quarter earnings releases from BID, VCB and SSI, focusing on net interest margin and funding cost guidance.
• SBV policy meetings and any further directives from the Prime Minister’s office on lending rate reductions.
• Bank bond and certificate of deposit issuance volumes and yields, with VIS Ratings’ monthly average as the reference point.