29 Vietnamese Banks Cut Deposit Rates After SBV Meeting, Led by VCB and BID

Overview

Twenty-nine Vietnamese commercial banks have reduced deposit interest rates following a meeting with State Bank of Vietnam (SBV) Governor Nguyễn Thị Hồng on April 9, 2026. The cuts, led by state-owned banks including Vietcombank (VCB) and BIDV, are widespread and in some cases repeated, signaling strong system-wide coordination to lower overall interest rates.

Key Facts

• 29 commercial banks reduced deposit rates after the SBV Governor’s meeting on April 9, 2026.
• Vietcombank (VCB) cut its 24-month term rate by 0.5% per year, bringing its highest rate to approximately 6% per annum.
• BIDV implemented the deepest cuts among state-owned banks, reducing rates by 0.8-0.9% per year across terms from 6 to 36 months, to around 5.8-6%.
• Joint-stock banks followed immediately: VPBank cut 0.3-0.5% across 6-36 month terms on April 10, while Techcombank reduced by 0.5% on similar terms.
• Some banks cut multiple times: SeABank reduced rates twice within days, and MSB implemented a second cut of 0.5% on 36-month terms.
• LPBank made among the sharpest joint-stock reductions, cutting 0.4-1.0% on 6-36 month terms and 1.0% on 36-60 month terms.
• The SBV stated the moves show high consensus to implement policy direction, aiming to create conditions for lower lending rates.

What Happened

According to the State Bank of Vietnam, a broad trend of deposit rate reductions has spread across the banking system since the April 9 meeting with the Governor. Twenty-nine commercial banks have adjusted rates downward, with many implementing significant and even repeated cuts in a short period. The four state-owned commercial banks—Vietcombank (VCB), Agribank, VietinBank, and BIDV—made notable adjustments. Vietcombank reduced its 24-month term rate by 0.5% annually, while BIDV cut most aggressively by 0.8-0.9% across multiple terms.

Joint-stock commercial banks began adjusting immediately on April 10, led by VPBank and SeABank. The article notes that not only were cuts deep, but some banks adjusted multiple times consecutively, indicating a rapid pace of change. SeABank, for example, made a second cut of 0.2% just days after its initial reduction. The trend continued in recent days with OCB, PVcomBank, Bac A Bank, and MSB making additional adjustments. The SBV framed these moves as demonstrating high system consensus to follow policy guidance, thereby helping to lower the lending rate floor to support businesses and promote economic growth.

Market Context

Vietcombank (VCB), listed on HOSE, closed at VND 60,000 on April 15, 2026, up 1.01% on volume of 8.5 million shares. Other major banks showed mixed performance: BIDV (BID) closed down 0.12%, while VietinBank (CTG) was flat. The banking sector has been under scrutiny for net interest margin compression amid previous high deposit rates. This coordinated reduction, following direct SBV engagement, represents a policy-driven shift that could alleviate some margin pressure if lending rates follow with a lag.

Strategic Significance

The rapid, widespread cuts signal a decisive move by the SBV to steer the banking system toward lower interest rates, reducing funding costs for banks. For long-term investors, this aligns with the central bank’s broader objective of stimulating credit growth and economic activity by making borrowing cheaper for enterprises. The participation of both state-owned and joint-stock banks, including multiple rounds of cuts, suggests regulatory pressure is effective, potentially leading to a sustained lower interest rate environment that could benefit bank profitability through improved credit demand, albeit with compressed spreads in the near term.

What to Watch

• Q2 2026 earnings reports from major banks like VCB, BID, and CTG for early signs of net interest margin impact.
• Subsequent SBV announcements or meetings for further guidance on lending rate reductions.
• Credit growth data for April and May 2026 to gauge if lower deposit rates stimulate loan demand.
• Any adjustments to the SBV’s operating interest rates or open market operations.
• Foreign ownership filings in banking stocks to monitor institutional response to the rate environment shift.