33 Vietnamese Banks Cut Deposit Rates in April, Signaling Lower Lending Rates

Overview

In April, 33 banks in Vietnam reduced deposit rates, mainly for terms of 6 months and above, with cuts ranging from 0.2% to 0.8% per year. The coordinated move, led by major lenders such as Vietcombank (VCB), VPBank (VPB), BIDV (BID), and HDBank (HDB), signals a shift toward lower funding costs and paves the way for reduced lending rates to support economic growth.

Key Facts

• 33 banks cut deposit rates in April, with reductions concentrated in terms of 6 months and above.
• The most aggressive cuts were for 6-month terms, with BIDV, VCBNeo, VPBank, Vikki Bank, Techcombank, PVcomBank, and HDBank reducing rates by up to 0.8% per year.
• For 12-month online savings, BIDV and VCBNeo led with cuts of 0.9% and 0.7% per year, respectively, compared to March.
• SeABank, Agribank, and VPBank cut rates twice within the month.
• GPBank became the 33rd bank to announce cuts, reducing rates by 0.3% per year across all terms, including under 6 months.
• Current deposit rates remain higher than at end-2025 due to aggressive increases in Q1.
• The State Bank of Vietnam (SBV) expects the trend to continue in Q2, with average cuts of 0.5-1% per year, according to KB Securities Vietnam (KBSV).

What Happened

In April, a wave of deposit rate cuts swept through Vietnam’s banking sector, with 33 banks reducing rates, primarily for terms of 6 months and above. The reductions ranged from 0.2% to 0.8% per year, with some banks like SeABank, Agribank, and VPBank cutting rates twice within the month. GPBank was the latest to announce a cut, reducing rates by 0.3% per year across all terms, including short-term deposits.

According to the SBV’s Monetary Policy Department head Pham Chi Quang, the deposit rate cuts help banks lower their cost of capital, enabling them to reduce lending rates to support businesses and the economy. The SBV remains committed to monetary policy that controls inflation and stabilizes the macroeconomy while facilitating growth. KBSV’s Q2 outlook report expects the easing trend to become more pronounced, with average deposit rate cuts of 0.5-1% per year, driven by strong public investment disbursement and easing global inflation pressures.

Market Context

On April 15, 2026, the four major banks affected by the rate cuts showed mixed price action on HOSE: VCB closed at VND 60,000 (+1.01%), VPB at VND 27,000 (unchanged), BID at VND 40,000 (-0.12%), and HDB at VND 26,000 (+1.15%). The banking sector has been under pressure from rising deposit rates in Q1, which squeezed net interest margins. The current rate cuts are expected to alleviate margin pressure and support lending growth, aligning with the government’s 10% GDP growth target.

Strategic Significance

The coordinated deposit rate cuts signal a deliberate policy push by the SBV to lower the cost of capital across the banking system. For banks like VCB, VPB, BID, and HDB, this reduces funding costs and improves net interest margins, especially if lending rates remain sticky. The move also supports credit demand from businesses and households, which is critical for achieving the ambitious 2026 growth target. However, the sustainability of the rate cuts depends on inflation and exchange rate stability, as well as the pace of public investment disbursement.

What to Watch

• Q2 2026 earnings reports from VCB, VPB, BID, and HDB for evidence of margin improvement.
• SBV policy meeting minutes and any further guidance on lending rate reductions.
• Inflation data and exchange rate movements, which could limit the scope for further cuts.
• Public investment disbursement figures, as a key driver of liquidity in the banking system.
• Any additional rate cuts by smaller banks, which would confirm the trend’s breadth.