Banking Sector Reaches New Heights: A Record-Breaking Milestone Achieved

The latest data from the State Bank of Vietnam reveals that by the end of September, total deposits from individuals in the banking system reached approximately VND 7,830 trillion, a nearly 10.9% increase compared to the beginning of the year—a growth rate significantly higher than previous years. This marks a new peak in resident deposits.

For businesses, deposits also saw an upward trend, reaching VND 8,350 trillion, equivalent to an 8.9% increase since the start of the year. This reflects the stable cash flow within the banking system from the production and business sectors.

In total, deposits from both individual and corporate customers at credit institutions reached nearly VND 16,180 trillion, a nearly 3% increase compared to the latest data released in late July (VND 15,730 trillion).

Regarding the surge in resident deposits, Mr. Cấn Văn Lực, Chief Economist at BIDV, stated that the rise in household deposits is due to current interest rates remaining attractive and outpacing inflation, making savings a preferred choice for the majority as other long-term investment options become riskier.

“In a context where credit growth is stronger than ever, banks are actively seeking ways to mobilize deposits from the public,” Mr. Lực added.

Meanwhile, according to Mr. Nguyễn Hữu Huân from the University of Economics Ho Chi Minh City, the increase in resident deposits aligns with credit growth. Capital flowing into vibrant investment channels like real estate and securities also drives money circulation within the banking system.

In terms of interest rates, the mobilization rate has remained stable throughout the first nine months. However, in October, several banks began adjusting rates slightly upward, primarily to prepare capital for peak credit demand in the final months of the year.

Since early November, the deposit interest rate landscape has seen an upward adjustment across most commercial banks. Statistics show that from early November to date, 22 banks have increased interest rates, including major private commercial banks and VietinBank, a state-owned commercial bank.

For short-term deposits under six months, many banks have raised rates to the ceiling of 4.75%/year as regulated by the State Bank. Notably, banks such as MB, Techcombank, Nam A Bank, and VIB have applied this maximum rate to attract short-term deposits.

In the medium and long-term deposit segment, rates have risen to 6–7%/year at many banks, with no requirement for large minimum deposits as before. This trend indicates an intensifying competition for deposits as banks prepare for year-end credit peaks.

Experts advise depositors to closely monitor interest rate movements to choose suitable deposit terms based on their financial needs. With interest rates trending upward, those planning medium to long-term deposits may consider locking in rates now to secure better returns and mitigate risks from future rate fluctuations.