VietABank Raises Reference Lending Rate to 9.2%

Overview

VietABank (VAB) has increased its reference lending rate to 9.2% per annum, up 0.2 percentage points, effective August 12, 2026. This marks the eighth adjustment this year, reflecting broader upward pressure on deposit and lending rates across Vietnam’s banking sector. The move comes amid rising deposit costs and liquidity constraints, with implications for borrowers and the bank’s net interest margin.

Key Facts

• VietABank’s reference lending rate for short-, medium-, and long-term loans is now 9.2% per annum, up 0.2 percentage points.
• The new rate took effect on August 12, 2026.
• Since the start of 2026, VietABank has announced eight changes to its reference rate, increasing short-term lending rates by 1.7% per annum and medium/long-term rates by 1.2% per annum.
• Several other banks have also raised their base/reference rates above 9% per annum, with some reaching 10-12%.
• Floating lending rates are typically calculated as the base rate plus a margin of 3-5% per annum.
• Deposit rates at many banks have exceeded 8% per annum for 12-month terms, with some reaching 9% under special conditions.
• The State Bank of Vietnam (SBV) has urged banks to implement credit programs for economic growth drivers and SMEs, with some banks launching packages with rates 1% lower than average.

What Happened

VietABank announced the new reference lending rate of 9.2% per annum, effective August 12, 2026, according to a bank notice. This is the eighth rate adjustment this year, reflecting a cumulative increase of 1.7 percentage points for short-term loans and 1.2 percentage points for medium- and long-term loans since January.

The increase is attributed to rising deposit rates and liquidity pressures across the banking system. Credit growth has outpaced deposit growth, straining bank liquidity. In response, the State Bank of Vietnam has issued directives encouraging banks to reduce costs and offer preferential credit packages, particularly for SMEs and priority sectors. Several banks have launched large-scale credit packages with rates 1% below average lending rates.

Market Context

VAB shares closed at VND 10,150 on August 11, 2026, on the HOSE. The banking sector has been under pressure from rising funding costs, which could compress net interest margins if lending rates do not keep pace. However, the rate hike may help protect margins, though it could also dampen credit demand. The broader market has been monitoring SBV’s policy stance, with recent regulatory efforts aimed at balancing credit growth and inflation control.

Strategic Significance

For long-term investors, VietABank’s rate hike signals a proactive approach to managing margin pressures in a rising-rate environment. The bank’s ability to pass on higher deposit costs to borrowers is crucial for maintaining profitability. However, the cumulative 1.7 percentage point increase in short-term rates this year may weigh on loan demand, particularly among SMEs, which are a key focus of government policy. The bank’s strategic positioning will depend on its ability to balance rate adjustments with credit quality and regulatory expectations.

What to Watch

• VietABank’s Q3 2026 earnings report, expected in October, to assess net interest margin trends.
• SBV’s monetary policy stance, including any changes to the refinancing rate or open market operations.
• Deposit rate movements at major banks, which could signal further lending rate adjustments.
• Credit growth data for the banking sector, particularly for SMEs and priority sectors.
• Any regulatory measures to cap lending rates or encourage preferential credit packages.