Vietnam banking sector sees shifting interest rates and liquidity trends

Vietnam's banking sector is experiencing significant shifts in interest rates. Interbank overnight rates dropped sharply in early October, falling to approximately 0.72% to 0.99% per annum, signaling improved short-term liquidity. However, experts note a disconnect between these low interbank rates and the higher costs faced by businesses and individuals for long-term loans.

Deposit rates remain high across many institutions. Some banks are offering savings rates exceeding 9% per annum for certain terms and balances, with some promotional rates reaching as high as 9.6%. Among the major state-owned banks (Big 4), rates for 12-month terms are around 6.8%. Private banks like Sacombank have led with higher 12-month rates of 7.5%.

While the State Bank of Vietnam has managed to stabilize exchange rates and liquidity through open market operations, there are concerns regarding the impact of sustained high interest rates on bad debt, particularly within the real estate sector. Total system credit grew by 11.5% compared to the end of 2025, reaching approximately 20.75 quadrillion VND as of late September 2026.