According to statistics from the State Bank of Vietnam, 23 domestic banks have lowered their deposit interest rates in the past month, including BVBank, MSB, VietBank, Saigonbank, VIB, BaoVietBank, Kienlongbank, BacABank, VietABank, PGBank, Eximbank, LPBank, NamABank, SHB, NCB, VCBNeo, BIDV, Techcombank, Vikki Bank, MBV, OCB, VietinBank, and ABBank. The reduction in interest rates by these banks ranges from 0.1% to 1% per annum, depending on the term.
Currently, GPBank is the only bank offering an interest rate of 6% or higher for deposits below VND 1 billion with a 12-month term. Other banks offer interest rates of 6% only for longer-term deposits.
This move by banks to lower savings interest rates comes after the Prime Minister directed inspections into banks that had increased their deposit interest rates in the past year. The government also instructed strict handling of any violations or failure to comply with directives. The Governor of the State Bank of Vietnam is tasked with considering and deciding on the use of management tools regarding credit growth limits and license revocation, as per regulations.
Banks seek alternative channels for capital mobilization besides savings deposits (Photo: Nhu Y)
In the context of deposit interest rates facing challenges to increase, banks have been actively issuing bonds as an important solution to boost capital mobilization while credit demand remains high.
At a recent event, Deputy Governor Dao Minh Tu shared that for every 10 dong deposited, banks can lend out 9 dong. However, many banks have been lending out more than 10 dong, which means they are utilizing their own capital, charter capital, and the State Bank’s refinancing capital to lend.
Setting a credit growth target of 16% reflects the State Bank’s determination to support the economy in achieving its ambitious 8% growth target for 2025. Maintaining low-interest rates is essential to reducing capital costs for businesses, facilitating production expansion, promoting investment, and ensuring capital flows into priority sectors.
According to FiinGroup’s report on the corporate bond market for February 2025, the total value of corporate bonds in circulation at the end of February was nearly VND 1,260 trillion, a slight decrease of 0.4% compared to the end of January 2025 but still higher than the same period last year.
The main reasons include the first quarter being typically a low point for bond issuance by banks and a cautious approach by non-bank issuers after the amended Securities Law took effect on January 1, 2025.
The weight structure of corporate bond values by industry in February 2025 remained almost unchanged from January 2025. Specifically, the banking sector continued to lead, accounting for 44% of the total value of corporate bonds in circulation in the market.
In a recent report to investors, VNDirect Securities Company also stated that to support economic growth, the State Bank set a high credit growth target of about 16% for 2025. With this target, the capital mobilization needs of banks are expected to continue to increase.
“The issuance of private placement corporate bonds with long terms, as implemented in 2024, will not only help banks raise capital but also support the improvement of the ratio of medium and long-term capital, ensuring compliance with the State Bank’s regulations on the maximum ratio of short-term capital mobilization for medium and long-term lending,” VNDirect said.
Therefore, VNDirect experts believe that in 2025, banks will continue to actively issue private placement corporate bonds to strengthen medium and long-term capital sources, thereby contributing to the recovery of the corporate bond issuance market.
CKG Announces Offering of Over 47 Million Shares to Existing Shareholders
The Kien Giang Construction Investment Consultancy Group Joint Stock Company (HOSE: CKG) is offering 47,629,680 shares to its existing shareholders at a price of VND 10,500 per share.
Financial Investment Litigation: Navigating the Complex Landscape
“The head of the National Assembly’s Committee for Petitions and Supervision noted that the situation regarding complaints related to corporate bonds and financial investments has remained complex and continues to evolve.”
The Art of Provincial Mergers: Streamlining Administrative Boundaries
The government has instructed the Ministry of Home Affairs to take the lead in collaborating with relevant agencies and local authorities to promptly develop a proposal for the continued reorganization and streamlining of administrative units at the provincial, district, and communal levels. This initiative aims to enhance efficiency and effectiveness in governance. The proposal will be submitted to the Party Committee of the Government, ensuring both quality and timely implementation.
“HDBank Aims High: Targeting Profits of Over 20 Trillion VND by 2025 with Plans to Maintain Similar Dividend Payouts”
At the investor conference held on February 18, 2025, representatives from HDBank, one of Vietnam’s leading joint-stock commercial banks, presented an insightful overview of the country’s economic growth potential, along with the bank’s specific plans for the year 2025.
Governor of the State Bank: The Banking Sector is Ready to Support the Economy to Achieve 8% Growth and Beyond
In a volatile global economic landscape, Governor of the State Bank of Vietnam, Nguyen Thi Hong, has expressed her determination to contribute to achieving an ambitious 8% economic growth target, while also keeping inflation in check and ensuring stability in the currency market. The banking sector is projected to witness a credit growth of approximately 16%, yet it is imperative to devise synchronized strategies to mobilize and utilize capital more efficiently.
