Vietnamese Banks Hike Deposit Rates Above 9% as Credit-Deposit Gap Widens

Overview

Vietnamese banks are intensifying competition for deposits, with some offering savings rates above 9% per annum and issuing high-yield certificates of deposit. The move reflects a widening gap between credit growth and deposit growth, which is straining liquidity and compressing net interest margins. Key affected tickers include VPB, MBB, and ACB.

Key Facts

• PVcomBank offers 9.2% per annum for 12-15 month deposits from VND 100 million.
• Sacombank offers 9% for 6-month deposits above VND 1 billion.
• VPBank raised rates on certificates of deposit (CDs) to as high as 9% for 6-7 month tenors and lowered minimum denomination below VND 10 million.
• MB (MBB) offers CD rates of 6.5-7.1% for 1-6 months, 2-3 percentage points above regular savings.
• ACB offers CD rates of 6.3-6.8% for short tenors.
• As of June 15, credit grew 6.38% while deposits grew only 4.3%, a gap of about 2 percentage points.
• The loan-to-deposit ratio (LDR) for many banks stands at 112-117%, meaning banks lend VND 112 for every VND 100 of deposits.

What Happened

According to a report by Tien Phong newspaper, Vietnamese banks are deploying multiple tactics to attract deposits, including raising savings rates above 9% per annum and issuing certificates of deposit with higher yields. PVcomBank leads with rates up to 9.2% for 12-15 month terms, while Sacombank offers 9% for 6-month deposits over VND 1 billion. VPBank has adjusted its CD rates upward across most tenors and reduced the minimum investment to under VND 10 million, making them accessible to retail customers. Even state-owned banks (Big4) are offering around 8% for large deposits, up significantly from early 2025.

The aggressive deposit drive is driven by a persistent gap between credit and deposit growth. State Bank of Vietnam data shows that over the past five years, credit growth has outpaced deposit growth by 3-4 percentage points on average. As of mid-June, credit expanded 6.38% while deposits rose only 4.3%, leaving a 2-percentage-point gap. This has pushed the loan-to-deposit ratio (LDR) for many banks to 112-117%, forcing them to rely on other funding sources.

Market Context

On July 10, 2026, VPB closed at VND 26,700 (-2.02%), MBB at VND 24,650 (+0.20%), and ACB at VND 22,550 (-1.10%). The banking sector on HOSE has been under pressure as rising deposit costs threaten net interest margins. The SBV’s open market operations have injected nearly VND 9,550 trillion in the week ending July 3 to ease interbank liquidity, but the structural imbalance persists. The three banks are among the most actively traded on HOSE, with combined volume exceeding 32 million shares on the day.

Strategic Significance

The deposit rate hike cycle signals that Vietnamese banks are facing a structural funding challenge. With credit demand remaining robust due to economic recovery, banks must compete for deposits to maintain liquidity and meet regulatory ratios. This trend compresses net interest margins (NIMs) as funding costs rise while lending rates are constrained by SBV guidance to support growth. For investors, the key risk is margin compression, especially for banks with high LDRs or reliance on wholesale funding. Conversely, banks with strong deposit franchises or lower LDRs may be better positioned.

What to Watch

• Q2 2026 earnings reports from VPB, MBB, and ACB, due in late July, for NIM trends and deposit cost disclosures.
• SBV policy actions: any change to the OMO rate or reserve requirements to manage liquidity.
• Monthly credit and deposit growth data from the SBV to see if the gap narrows.
• Further deposit rate adjustments by other banks, especially Big4, which could signal systemic pressure.
• Foreign ownership limits and any changes in capital inflows that could ease deposit competition.