VPBank, Sacombank Lead Vietnam Bank Rate Cuts as SBV Pressure Builds

Overview

VPBank (HOSE: VPB) will cut lending rates by up to 1.5% for individual customers in six designated sectors and for SME working-capital borrowers from 26 October, while reducing online deposit rates by 0.5% on selected tenors from 20 October. Sacombank (HOSE: STB) is running a parallel programme, adding a VND 20,000B retail credit package after an earlier VND 40,000B corporate package. The moves form part of a broader easing wave across Vietnamese banks following directives from the Government and the State Bank of Vietnam (SBV).

Key Facts

• VPBank cuts lending rates by up to 1.5% from 26 October for individual customers in six priority sectors: pharmaceuticals, consumer retail and food service, construction materials, tourism, agriculture and aquaculture, and handicraft production.
• VPBank reduces SME working-capital lending rates by up to 1.5%, backed by a dedicated VND 10,000B limit.
• VPBank lowered online deposit rates by 0.5% for individual customers on selected tenors from 20 October.
• Sacombank launched a VND 20,000B retail credit package with rate reductions of 1.5-2% per year, split into VND 10,000B for new production and business loans and VND 10,000B for existing eligible customers.
• Sacombank cut deposit rates by 0.5% per year on tenors of six months and above from 20 October, and earlier deployed a VND 40,000B corporate package with a 2% per year lending-rate reduction.
• The article states the easing wave is expected to extend through the end of 2026.

What Happened

According to the article, VPBank is implementing the rate reductions in response to sustained direction from the Government and the SBV to support businesses and households. The individual-customer programme covers six named sectors, while the SME component targets borrowers adding working capital for production and trade. VPBank’s VND 10,000B limit applies to corporate borrowers in agriculture and rural areas, supporting industries and manufacturing, high-tech and digital-economy firms including artificial intelligence and semiconductors, green-economy qualifying enterprises, and other priority sectors designated from time to time.

Sacombank said it is continuing to execute the Government and SBV policy on lowering the overall interest-rate level. The bank is deploying an additional VND 20,000B preferential credit package focused on individual customers, with reductions of 1.5-2% per year. This follows its 20 October deposit-rate cut of 0.5% per year on tenors of six months and above and a VND 40,000B corporate lending programme at 2% per year below the prevailing framework. The article does not disclose the expected revenue or margin impact of these programmes for either bank.

Market Context

VPB closed at VND 24,100 on 24 October 2026 on HOSE, while STB closed at VND 68,500, ACB at VND 21,300 and SHB at VND 10,900. The rate cuts arrive as Vietnamese banks balance policy-directed lending-rate relief against deposit-cost management, with the article noting the easing cycle is forecast to run through end-2026. Sector-wide deposit-rate reductions have been a recurring theme in October, with daily rate surveys across Agribank, Vietcombank, BIDV, VietinBank, MB, Techcombank, Sacombank, HDBank and others tracking successive adjustments.

Strategic Significance

The strategic question for investors is whether policy-directed rate relief compresses net interest margins or is offset by cheaper funding costs and faster credit growth. VPBank’s sector-targeted approach channels the reduction toward priority industries the Government wants financed, which may support volume growth in SME and retail segments where the bank has scale. Sacombank’s staged packages, VND 40,000B corporate followed by VND 20,000B retail, suggest a deliberate sequencing to protect existing-customer relationships while competing for new production and business borrowers. For the banking sector broadly, the durability of the easing wave through 2026 will determine whether margin compression is a one-off policy cost or a structural reset of lending spreads.

What to Watch

• Third-quarter and fourth-quarter 2026 net interest margin disclosures from VPB and STB, showing whether rate cuts compress spreads.
• SBV policy statements or directives extending or adjusting the rate-reduction campaign beyond October 2026.
• Monthly credit-growth data from the SBV, indicating whether preferential packages translate into loan volume.
• Deposit-rate surveys across the listed banks, tracking whether funding costs fall in step with lending-rate reductions.
• Any foreign-ownership or block-trade filings in VPB or STB that could signal institutional repositioning around the easing cycle.