Vietnam Deposit Rate Race: Private Banks Hit 9.8% vs Big 4 at 8.0%

Overview

Vietnamese banks are engaged in a deposit rate race, with private banks offering negotiated rates up to 9.8% per year, while Big 4 banks cap at 8.0%. This reflects strong credit demand from mega projects and liquidity pressure, as reported by MarketTimes in early September 2026. The divergence between state-owned and private banks is widening, with implications for funding costs and competitive dynamics across the sector.

Key Facts

• Private banks like KienlongBank lead with negotiated deposit rates up to 9.8% per year, followed by LPBank at 9.6%.
• Big 4 banks (Vietcombank, VietinBank, Agribank, BIDV) maintain a negotiated rate cap of 8.0% per year.
• MBBank offers a slightly higher rate of 8.2% per year.
• Sacombank and GPBank both reach 9.5% per year.
• Other private banks offering above 9% include HDBank (9.42%), VPBank (9.3%), SHB (9.3%), and VIB (9.2%).
• High negotiated rates typically require large deposits (tens to hundreds of billions VND), long tenors (12-36 months), and VIP customer status.
• The rate race is driven by credit demand from mega infrastructure projects and a mismatch between deposit growth and loan growth.

What Happened

According to a MarketTimes survey published in early September 2026, the advertised deposit rates at bank branches have become largely indicative, as actual negotiated rates are significantly higher. Private banks are aggressively competing for deposits, with KienlongBank offering up to 9.8% per year, LPBank at 9.6%, and several others above 9%. In contrast, the Big 4 state-owned banks—Vietcombank, VietinBank, Agribank, and BIDV—have kept their negotiated rate caps at 8.0% per year, reflecting their stronger brand, extensive networks, and higher CASA ratios.

The article notes that these high rates are not universally available; they are reserved for large deposits, typically from tens to hundreds of billions of VND, with tenors of 12 months or longer, and for VIP customers who commit to maintaining balances or using additional banking services. The actual rate also depends on the credit growth targets and short-term liquidity needs of individual branches.

The race is attributed to substantial credit demand from mega projects, which require hundreds of trillions of VND in capital, and a mismatch between deposit mobilization and credit growth. This has put pressure on the banking system’s liquidity, prompting private banks to offer higher rates to attract funds.

Market Context

Vietcombank (VCB), listed on HOSE, closed at VND 58,000 on September 8, 2026, unchanged from the previous session, with low volume of 574,000 shares. Other major banks also showed stable prices: BID closed at VND 36,000, CTG at VND 30,800, and MBB at VND 20,200 on September 7, 2026. The deposit rate race is occurring against a backdrop of strong credit growth and tight liquidity, which could pressure net interest margins for banks that rely on expensive deposits. The sector’s performance will likely be influenced by how banks manage funding costs and loan growth in the coming quarters.

Strategic Significance

For long-term investors, the deposit rate divergence underscores the competitive advantages of Big 4 banks like Vietcombank, which can maintain lower funding costs due to their strong CASA ratios and brand trust. This allows them to preserve net interest margins even as private banks bid up deposit rates. However, the aggressive rate competition among private banks signals potential margin compression and increased risk-taking, which could affect their profitability and asset quality. The ability of private banks to sustain such high rates will depend on their loan yields and credit demand from mega projects. Investors should monitor how this rate race evolves, as it could reshape the competitive landscape and influence bank valuations.

What to Watch

• Quarterly earnings reports from major banks (VCB, BID, CTG, MBB) for net interest margin trends.
• State Bank of Vietnam policy signals on interest rate caps or liquidity management.
• Credit growth data for the banking sector, especially related to mega infrastructure projects.
• Any changes in deposit rate caps by Big 4 banks, which could signal systemic liquidity stress.
• Foreign ownership limits and capital inflows into Vietnamese banks, which may affect funding dynamics.