Deposit rate pressure intensifies
According to the State Bank of Vietnam (SBV), by the end of October 2025, total system-wide credit had grown nearly 15 percent compared to the end of 2024 and over 20 percent year-on-year.
Among 27 listed commercial banks accounting for roughly 80 percent of total outstanding loans, credit growth reached its highest level in five years. The rapid pace of disbursement has triggered a wave of capital mobilization, pushing up deposit rates across the banking sector.
In November 2025, 21 commercial banks raised deposit rates by 0.2–0.7 percentage points, with several adjusting rates multiple times in one month, including BaoViet Bank, Techcombank, LPBank, and VPBank. For long-term deposits over 12 months, many banks now offer 8 percent to 9 percent per year for large deposits. Even VietinBank, a Big 4 state-owned lender known for stability, increased rates by 0.4–0.6 percent per year for short and medium-term deposits. Analysts expect the deposit race to remain heated through December as banks seek funds to meet year-end lending demand.
The Vietcombank Securities Company (VCBS) noted that room for further deposit rate cuts is virtually exhausted and that rates may even inch higher due to two key factors:
- Rising liquidity pressure as credit growth accelerates in the fourth quarter toward the 18 percent–20 percent annual target.
- Persistent USD/VND exchange rate pressure as foreign currency demand rises during the import-heavy year-end period.
Financial expert Nguyen Tri Hieu added that banks are pushing for higher credit growth in 2025. “Year-end is always the peak season for capital demand from both businesses and consumers, especially before the Lunar New Year. Deposit rates are unlikely to fall, some may rise further. As funding costs increase, lending rates could also face upward pressure,” he said.
From the regulatory perspective, Nguyen Duc Lenh, Deputy Director of the branch of SBV’s Region 2 emphasized that while growing credit drives up deposit mobilization and interest rates, monetary policy for 2025 aims to support growth. With liquidity abundant and inflation under control, he expects loan rates to remain stable through the year-end and Tet holidays.
Maintaining loan stability amid rising costs
Despite rising deposit costs, banks are striving to keep lending rates stable to continue supporting businesses and the economy.
CEO Pham Hong Hai of OCB noted that while capital costs are climbing due to liquidity demand, the pool of high-quality borrowers remains limited. “Competition among banks is fierce, but many still prioritize keeping lending rates steady. Some are even accepting thinner profit margins to retain good clients,” he explained.
SBV data shows that as of October 31, 2025, the average lending rate for new disbursements by commercial banks stood at 6.88 percent per year, down 0.1 percentage point from the end of 2024. This indicates the SBV’s flexible and effective management, maintaining lending stability despite liquidity and exchange rate pressures.
To support individuals and businesses in disaster-affected regions, the SBV has also directed banks to cut rates, restructure loans, and extend new credit for recovery. Many banks responded by reducing lending rates by 0.5 percent to over 2 percent per year, waiving late interest fees, and aligning overdue rates with regular loan rates.
Among them, ABBANK led with a 2.8 percent annual reduction for medium- and long-term loans such as home, car, and secured consumer loans, and 1.5 percent for small and medium enterprises. VPBank launched a VND1,000 billion support package across 15 provinces affected by storms and floods, offering rate cuts of 1 percent per month for loans over 12 months (for six months) and 0.5 percent per month for short-term loans (for three months).
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