In the year-end period, savings interest rates have become a focal point, with many banks adjusting their offerings, showing clear divergence.

The State Bank of Vietnam (SBV) has issued two new decisions on deposit interest rates, effectively from November 20 this year.

As of June 30, credit expanded 6% compared to the end of 2023 while total outstanding loans approximated 14.4 quadrillion VND (563.3 billion USD), a positive signal showing this year's credit growth target of 14 - 15% is within reach, experts said. ​

A decrease in deposit interest rates has been recorded in a number of banks from the beginning of April.

Deposit interest rates are expected to remain low until the middle of 2024, with a slight increase anticipated thereafter due to higher credit demand, analysts said.

The central bank is focused on encouraging credit institutions to cut expenses, simplify credit granting procedures, and reduce lending interest rates to support the economy, an official has said.

Due to challenging business conditions and high deposit interest rates earlier this year, many companies were quick to increase their deposit amounts to earn interest.

Deposit interest rates at four major banks of Vietnam were adjusted sharply, down by 0.4% per year from the previous listings, bringing the rate to 1.8% per year at the lowest.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) continued slashing deposit interest rates on January 12, with the lowest standing at 1.7% per year.

Savings interest rates have set a new record low of only 1.9% per year for a 1-2-month term.

Deposit interest rates at four major banks of Vietnam have been adjusted sharply, down by 0.2-0.4% per year from the previous listings, bringing the rate to 2.2% per year at the lowest.

The race to lower deposit interest rates among banks is expected to continue until the end of 2023, according to analysts.

Experts forecast interest rates will drop about half a percentage point from now to the year’s end to stimulate production and business activities and fuel economic recovery.

Going against the usual rule of gradual increases in the last months of a year, deposit interest rates in most banks are anchored at low levels, and even some continue to decrease.

Two more State-run commercial banks, Vietinbank and BIDV, on September 19 lowered their deposit interest rates matching the lowest level recorded during the COVID-19 pandemic.

The latest deposit interest rates at the four major banks have simultaneously decreased to the lowest level in one year.

The latest deposit interest rates at the four major banks have simultaneously decreased to the lowest level in one year.

Banks have to lower lending interest rates to stimulate demand for new loans as credit growth falters and deposit interest rates have also dropped sharply.

Dozens of commercial banks have simultaneously decided to reduce deposit interest rates from May 25, after the State Bank's decision to cut policy interest rates.

With many favourable factors from the global market, experts forecast the State Bank of Vietnam (SBV) will continue easing the monetary policy and cut regulatory interest rates by another 50 basis points in mid-2023.