Vietnamese banks have begun cutting deposit rates under a State Bank of Vietnam directive, with over 20 banks reducing rates as of October 22, though lending rates remain high. SBV Governor Phạm Đức Ấn asked banks to cut lending rates by 1.5-2 percentage points a year for production, business and priority sectors, and deposit rates by at least 0.5 percentage points for terms of six months or longer. Banks that fail to comply could face lower credit growth targets, and the central bank will monitor average rates on new transactions in the final months of 2026. As of end-September, average individual lending rates ranged from 7.73 per cent at BIDV to 11.38 per cent at OCB. Expert Nguyễn Đức Độ said high funding costs remain a major obstacle and suggested transparent interest subsidies funded by the state budget.
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Related tickers and likely impact
VNINDEX
▲ Likely positiveRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/23/2026 | 1,774.15 |
| Change that session | +0.77% |
ACB
▲ Likely positiveAsia Commercial Bank
Relevance: low
| Market | Vietnam stocks |
|---|---|
| Exchange | HOSE |
| Sector | Banks |
| Market cap | 118,991 bn VND |
| P/E | 7.6 |
| P/B | 1.20 |
| Close on 10/23/2026 | 21.30 |
| Change that session | +3.90% |
BID
▲ Likely positiveBIDV
Relevance: low
| Market | Vietnam stocks |
|---|---|
| Exchange | HOSE |
| Sector | Banks |
| Market cap | 262,904 bn VND |
| P/E | 8.2 |
| P/B | 1.39 |
| Close on 10/23/2026 | 34.25 |
| Change that session | +1.33% |
CTG
▲ Likely positiveVietinBank
Relevance: low
| Market | Vietnam stocks |
|---|---|
| Exchange | HOSE |
| Sector | Banks |
| Market cap | 237,280 bn VND |
| P/E | 5.9 |
| P/B | 1.21 |
| Close on 10/23/2026 | 30.95 |
| Change that session | +1.31% |
EIB
▲ Likely positiveEximbank
Relevance: low
| Market | Vietnam stocks |
|---|---|
| Exchange | HOSE |
| Sector | Banks |
| Market cap | 31,573 bn VND |
| P/E | 64.2 |
| P/B | 1.19 |
| Close on 10/23/2026 | 17.85 |
| Change that session | +5.31% |
HDB
▲ Likely positiveHDBank
Relevance: low
| Market | Vietnam stocks |
|---|---|
| Exchange | HOSE |
| Sector | Banks |
| Market cap | 145,428 bn VND |
| P/E | 7.6 |
| P/B | 1.69 |
| Close on 10/23/2026 | 22.55 |
| Change that session | +0.89% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Many banks lend at average above 11% ahead of rate cut
According to VnExpress's tally of 30 banks, average lending rates kept rising in September, with OCB highest at 11.38% a year, followed by Techcombank (11.24%), TPBank (11.03%) and BVBank (11%). Other private banks mostly quoted 10.2-10.8%, VIB, ACB, PVcomBank and several others were around 9-9.8%, while BIDV and Agribank were at 7.73% and 8.42%. On October 18, the State Bank of Vietnam asked banks to cut lending rates by 1.5-2 percentage points for production, business and priority sectors, and to lower deposit rates for terms of 6 months or longer by at least 0.5 points. Banks that do not comply may face measures, including reduced or lowered credit growth targets. The August average lending rate was 10.7%, 1.7 points above late last year.
- Bridging the gap between deposit mobilization and credit growth
As of October 14, 2026, outstanding credit across the economy exceeded VND 20.72 million billion, up 11.44% from end-2025, while deposit mobilization grew 11.22% as of the October 19 meeting, lagging credit growth. The article says demand for capital is rising faster than banks' ability to raise funds, even though household deposits rose 10.63% to about VND 11.43 million billion by end-August. It warns that simply raising deposit rates could push up funding costs and make lending rates harder to cut. At the October 19 meeting, the State Bank of Vietnam asked banks to cut deposit rates by at least 0.5 percentage points for terms of 6 months or more and lending rates by 1.5-2 percentage points for production, business and priority sectors. Banks including BIDV, Agribank and Vietcombank have announced support programs, but the article argues that effectiveness should be judged by how many firms actually access capital and the real reduction in borrowing costs.
- Latest Lending Rates at Banks
As of October 20, 15 of Vietnam's 46 commercial banks had cut their average lending rates by 1.5–2% on the State Bank of Vietnam's directive. Some banks now offer average lending rates as low as 4.1% per year.
- Indebted Businesses Show Little Interest in New Loan Packages Despite Lower Interest Rates
Although many banks have announced lower lending rates, several businesses say existing loans have not been repriced and new borrowing remains difficult. Phạm Thái Bình, Chairman of Trung An High-Tech Agriculture JSC, a rice-export enterprise, said implementation is the real issue, as lending rates have at times reached about 10% per year and some banks favor large projects. Thắng Lợi Tea Cooperative in Thái Nguyên needs about VND 15 billion to expand but lacks complete sales invoices, and fears that a 6% preferential rate lasting only briefly would later float higher, preferring stable rates for 3-5 years. Hoàng Văn Vinh, General Director of V.A. Ekaterinburg Investment Co., said some floating-rate loans have risen above 11% per year and he has seen no cuts on existing debt. The State Bank Governor, Phạm Đức Ấn, has met 46 banks on implementing the cuts.
- Deputy Prime Minister Calls for 1.5-2% Cut in Lending Rates
Deputy Prime Minister Nguyen Van Thang has asked the State Bank to cut lending rates by 1.5-2% for production, business and priority sectors, and made the Governor directly responsible for implementation. At a meeting on October 16, he said lending rates remain high, raising capital costs and limiting businesses' and people's access to credit, amid pressure on inflation, exchange rates, bad debt and banking risks. According to the State Bank, average lending rates in August reached 10.7%, up 0.2 percentage points from the previous month and about 3 percentage points from a year earlier. Although state-owned banks advertise average rates of about 7.4-7.6%, a VnExpress survey found Big4 banks actually lend at 9-10.5%, and some private banks charge up to 12%. He also asked banks to cut costs, make rates transparent and control credit quality, especially in real estate.
- Savings Interest Rates Have Risen for 11 Consecutive Months
The average deposit interest rate has risen continuously since October 2025, reaching 8.1% for 6-12 month terms versus 5.5% a year earlier, before climbing more slowly under State Bank of Vietnam guidance. The average lending rate in September was 10.9%, nearly 2 percentage points higher than at the end of last year, while short-term rates for priority sectors remain capped at 4%. Many banks have announced deposit rate cuts of at least 0.5 percentage points, and the streak of increases is likely to end this month, with some analysts expecting rates to stay flat until year-end. The State Bank of Vietnam also asked banks to cut lending rates by 1.5-2 percentage points a year for production, business and priority sectors, and warned that non-compliant institutions could face reviews of their remaining credit quotas.
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