Vietnamese Deposit Rates Continue to Fall in May: VPBank, BID, HDB Affected

Overview

Deposit rates at Vietnamese commercial banks continue to decline in May, following a trend from late April. Major banks including VietinBank, Agribank, VPBank, Techcombank, and HDBank have cut rates by 0.5-0.6% per year, reflecting a coordinated effort to reduce funding costs and support economic recovery. The move affects listed banks such as VPBank (VPB), BIDV (BID), and HDBank (HDB).

Key Facts

• VietinBank reduced deposit rates by 0.5% per year for long-term tenors (24-36 months) at branches.
• Agribank maintains 12-month deposit rate at 5.9% per year and 24-month at 6.0% per year.
• VPBank cut rates by approximately 0.5-0.6% per year.
• Techcombank and HDBank each reduced rates by about 0.5% per year.
• As of March, average VND deposit rates ranged from 0.1-0.2% for demand deposits to 6.7-7.2% for over 24 months.
• The State Bank of Vietnam’s governor issued guidance in late April, prompting further rate cuts.
• Bank leaders at BIDV, Vietcombank, and VietinBank expect rates to stabilize or decline slightly by year-end.

What Happened

In May, multiple Vietnamese commercial banks announced reductions in deposit interest rates, continuing a downward trend that began in late April. The cuts range from 0.5% to 0.6% per year across various tenors, with state-owned banks like VietinBank and Agribank adjusting long-term rates, and private banks such as VPBank, Techcombank, and HDBank following suit. The moves are in line with the State Bank of Vietnam’s (SBV) directive to lower funding costs and support economic recovery.

According to the SBV’s March report, average VND deposit rates varied widely by tenor, but the latest adjustments are expected to push the overall rate floor lower. At recent annual general meetings, leaders of major banks including BIDV, Vietcombank, and VietinBank indicated that while short-term pressure remains, the medium-term outlook is improving. Vietcombank Chairman Nguyen Thanh Tung stated that a deposit rate race is unlikely for the rest of the year.

Market Context

As of April 15, 2026, VPBank (VPB) closed at VND 27, unchanged, with volume of 9.5 million shares on HOSE. BIDV (BID) closed at VND 40, down 0.12%, on volume of 6.0 million shares. HDBank (HDB) closed at VND 26, up 1.15%, on volume of 10.7 million shares. The banking sector has been under pressure from rising funding costs and tight liquidity, but the recent rate cuts signal a potential easing. The SBV’s guidance and coordinated bank action may help stabilize net interest margins (NIM) in the coming quarters.

Strategic Significance

The coordinated deposit rate reduction reflects a policy-driven effort to lower the cost of capital for banks, enabling them to cut lending rates and stimulate credit demand. For VPBank, BIDV, and HDBank, this could support loan growth but may compress NIM in the short term if deposit rates fall faster than lending rates. The move also reduces the risk of a deposit rate war, which had been a concern earlier in the year. Long-term, lower funding costs could improve profitability if credit quality remains stable.

What to Watch

• Q2 2026 earnings reports from VPBank, BIDV, and HDBank for NIM trends.
• SBV policy meeting minutes or further guidance on interest rates.
• Credit growth data for May and June to gauge loan demand.
• Any divergence in deposit rate adjustments among smaller banks.
• Foreign ownership changes in banking stocks as rate environment shifts.