Vietnamese Banks Issue CDs at 9% Rates Amid Deposit Competition
This Aveluro analysis covers VPB (VPBank) on HOSE in the Banks sector. The classified event type is sector sentiment, with positive sentiment and a deterministic market-impact score of 4.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Tài chính ngân hàng, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Vietnamese banks are increasingly turning to certificates of deposit (CDs) with annual interest rates as high as 9% to attract funds, as credit growth outpaces deposit mobilization. VPBank (VPB) offers the highest rate at 9% per year for deposits from VND 100 million, while other major banks like ACB, MB, MSB, and BVBank are also issuing CDs at rates above standard savings accounts. This trend signals intensifying competition for deposits, which could pressure banks’ net interest margins.
Key Facts
- VPBank (VPB) offers CD rates from 6.2% to 7.8% per year for tenors of 1-6 months on deposits of VND 10 million, and 7.3% to 9% per year for deposits from VND 100 million.
- ACB offers CD rates of 6.5% to 7.2% per year for tenors of 1-5 months, with a minimum deposit of VND 10 million.
- MB (MBB) issues CDs with a minimum amount of VND 200,000, offering 1.8% per year for 1-day tenors and up to 7% per year for 3-6 month tenors.
- MSB offers CD rates up to 8.8% per year for qualifying deposit amounts.
- BVBank (BVB) offers online CDs with rates up to 8.2% per year for tenors of 6-12 months, minimum VND 10 million.
- As of end-June, system-wide credit outstanding reached VND 19.97 quadrillion, up 7.41% from end-2025 and 18.1% year-on-year.
- Deposit mobilization growth has been slower than credit growth, widening the funding gap.
What Happened
According to a report by Tiền Phong, several Vietnamese banks are aggressively marketing certificates of deposit with interest rates significantly higher than regular savings deposits. VPBank, for instance, offers rates up to 9% per year for deposits of VND 100 million or more with tenors of 1-6 months. ACB, MB, MSB, and BVBank have also introduced CD products with rates ranging from 6.5% to 8.8% per year.
Dr. Châu Đình Linh, an economist and lecturer at the University of Banking in Hồ Chí Minh City, explained that CDs are not subject to the same interest rate caps as regular deposits, allowing banks to offer higher rates. He noted that CDs diversify banks’ funding tools and help attract funds amid intensifying deposit competition.
The State Bank of Vietnam (SBV) data shows that credit growth reached 7.41% in the first half of the year, while deposit growth lagged, widening the gap between lending and funding. This has forced banks to seek additional capital sources, including CDs, to meet loan demand and regulatory capital adequacy ratios.
Market Context
On September 2, 2026, VPB closed at VND 27,800 on HOSE, ACB at VND 22,650, MBB at VND 21,050, and MSB at VND 13,350. The banking sector has been under pressure from rising funding costs, as banks compete for deposits to support credit growth. The SBV has kept policy rates unchanged, but market rates are drifting higher, particularly for CDs, which are not subject to deposit rate caps. This trend could squeeze net interest margins across the sector, affecting profitability for banks like VPB, ACB, MBB, MSB, and BVB.
Strategic Significance
The shift toward higher-cost CDs reflects a structural challenge for Vietnamese banks: credit demand is robust, but deposit mobilization is insufficient to fund it. Banks are increasingly relying on non-deposit funding instruments, which may carry higher costs and regulatory implications. For long-term investors, this signals that banks with strong deposit franchises and low cost of funds may have a competitive advantage, while those relying on expensive CDs could see margin compression. Additionally, the SBV’s stance on policy rates and its oversight of the bond market will influence how banks manage their funding mix.
What to Watch
- Quarterly earnings reports for Q3 2026, particularly net interest margin trends for VPB, ACB, MBB, MSB, and BVB.
- SBV policy rate decisions and any changes to deposit rate caps or CD regulations.
- Deposit growth data for the banking system in the coming months, to see if the funding gap narrows.
- Any issuance of tier-2 capital or other funding instruments by banks to meet capital adequacy requirements.
- Market reaction to CD rates: whether competition escalates further, potentially triggering regulatory intervention.