Vietnam Central Bank Orders Deposit Rate Cuts of at Least 0.5 Points on Longer Terms
The State Bank of Vietnam (SBV) has ordered banks to reduce deposit rates by at least 0.5 percentage points for terms of six months or longer, and to stop competing aggressively for deposits, Tuoi Tre newspaper reported.
Banks that do not comply could face reduced credit growth quotas for the remainder of 2026 and for 2027, along with stricter prudential requirements, the report said.
Deposit rates are the main tool Vietnamese banks use to compete for savers' funds; aggressive competition raises banks' funding costs and feeds through into lending rates for businesses and households. The order comes as the government also moves to simplify fuel supply chains to cut distribution costs, aligning monetary and price management. The SBV has not published a timetable for banks' compliance.
Source: GSM · USA (original Chinese edition)
Photo: 图：河内市景。来源：Wikimedia Commons，CC BY-SA 4.0 / Photo: A Hanoi cityscape. Source: Wikimedia Commons, CC BY-SA 4.0
