Vietnam Banks Cut Deposit Rates 50-70bps After SBV Directive: VCB, CTG Lead

Overview

Vietcombank (VCB) and VietinBank cut deposit rates by 0.5 percentage points on terms of 6 months and longer, effective 20 October 2026, with about 15 private banks reducing 50-70 basis points in parallel. The coordinated move follows a 19 October meeting between the State Bank of Vietnam (SBV) and credit institutions aimed at lowering the funding-rate floor and creating room for lending-rate cuts.

Key Facts

• Vietcombank cut 6-month and 9-month counter deposit rates from 3.5% to 3.0% per year, a 50 basis point reduction.
• Vietcombank’s 12-month rate fell from 5.9% to 5.4%, and the 24-month rate from 6.0% to 5.5%.
• Vietcombank’s 36, 48 and 60-month rates were set at 4.8%, down from 5.3% previously.
• VietinBank cut 6 to under-12-month rates from 3.5% to 3.0%, 12 to under-24-month rates from 5.9% to 5.4%, and 24-month-plus rates from 6.0% to 5.5%.
• Roughly 15 private banks reduced 6-month-plus deposit rates by 0.5-0.7 percentage points, including ACB, TPBank, Sacombank, LPBank, OCB, Nam A Bank, NCB and KienlongBank.
• Short-term rates under 6 months, capped at 4.75% per year, were largely unchanged, with minor cuts at LPBank, ACB and SeABank.
• The SBV required credit institutions to cut listed deposit rates by a minimum of 0.5% per year on affected tenors.

What Happened

Vietcombank and VietinBank published new deposit rate schedules applying from 20 October 2026, cutting rates across all tenors of 6 months and longer while leaving shorter tenors unchanged. At Vietcombank, the 1- and 2-month rate stays at 2.1% per year and the 3-month rate at 2.4%. VietinBank kept sub-1-month rates at 0.2%, 1 to under-3-month rates at 2.1% and 3 to under-6-month rates at 2.4%.

The adjustments follow a 19 October meeting between the SBV and credit institutions on measures to stabilise the monetary market, lower the overall interest-rate level and support economic growth. According to the article, the SBV directed institutions to reduce listed deposit rates by at least 0.5% per year on the affected tenors. The same publication reported that Agribank, Vietcombank, BIDV, MB, ACB, Sacombank, LPBank, VietBank and Nam A Bank had already announced lending-rate cuts on 19 October, with MB, VietinBank, SHB, TPBank and OCB joining later that day.

Market Context

VCB on HOSE closed at VND 56,200 on 19 October 2026, ahead of the rate announcement. CTG closed at VND 30,500, ACB at VND 20,250 and TPB at VND 11,950. The cuts land across the banking sector simultaneously, with state-owned joint-stock banks and private lenders moving together rather than competing on deposit pricing, which limits the deposit-flight risk individual banks would face acting alone. The article does not provide index-level or sector performance data for the session.

Strategic Significance

The policy sequence matters more than the individual rate sheets: the SBV is compressing deposit costs first and lending rates second, in that order, which protects bank spreads during the transition rather than forcing an immediate margin squeeze. For VCB and CTG, whose funding bases are deposit-heavy and whose 12-month rates now sit at 5.4%, the near-term effect is a lower cost of funds that partially offsets the revenue hit from cheaper loans. The longer-term question is whether cheaper credit revives corporate and mortgage demand enough to offset thinner per-asset margins. Banks with weaker current-account and low-cost deposit franchises, particularly smaller private lenders that cut 0.7 percentage points, face more pressure to defend share without repricing liabilities upward.

What to Watch

• Q3 2026 earnings releases from VCB, CTG and ACB, and any net interest margin guidance for the fourth quarter.
• SBV monthly credit growth data for October and November 2026, to test whether lending demand responds to lower rates.
• Further lending-rate announcements from the banks named in the 19 October reports.
• Deposit rate sheets for November 2026, to confirm whether the 0.5% floor holds or competition resumes.
• SBV policy statements or meeting minutes elaborating on the 19 October directive and any follow-up caps.