Deposit rates surge after central bank raises rate ceiling
A slew of small- and medium-size commercial banks have hiked their deposit interest rates by 0.3-1 percentage points after the State Bank of Vietnam raised the deposit rate ceiling Friday.
Per the central bank's decision, the deposit rate ceiling for term deposits from one month to less than six months has increased by 1 percentage point to 5% per year. For demand deposits and those with terms of less than 1 month, the rate ceiling has risen from 0.2% to 0.5% per year.
The State Bank made the move after the Federal Reserve (Fed) for the third time in a row had raised the benchmark interest rate by 75 percentage points to tame inflation in the U.S.
The deposit rate ceiling hike allows banks in need of capital to pay higher deposit rates to encourage depositors. That also means lending rates might increase in tandem.
Asia Commercial Bank (ACB) announced Friday new rates for term deposits from one month to three months at a maximum 4.4% per year, up 0.4 percentage points. The bank also raised the rate for term deposits of 36 months to 6.9% per year.
Saigon-Hanoi Bank (SHB) raised the rate for term deposits from one month to six months by 0.8-0.9 percentage points to 4.6-4.9%.
The rates for longer-term deposits have also gone up by 0.4-0.5 percentage points. The bank's rate for 36-month term deposits is now at 7.1%.
KienLongBank (KLB) set the new deposit rate for term deposits of between one and six months at a maximum 5% and the figure for 36-month term deposits is 6.95%.
Similar to KLB, Viet Capital Bank (BVB) set 5% interest rate for term deposits of between one and six months. For term deposits of 12 months or more, the highest interest rate is 7.3%.
However, major banks like Vietcombank, BIDV, VietinBank - those with the state as majority shareholder, and leading private lenders like VPBank and Techcombank have yet to raise their deposit interest rates.
Vietcombank and BIDV set their rates for term deposits between one and three months at 3.1-3.4%, six months at 4%, and 12-36 months at 5.6%.
VPBank’s rates for term deposits between one and three months are 3.2-3.6%, six months 5.2%, and 36 months 5.8%.
VNDirect Securities anticipated deposit interest rates may climb by 0.3-0.5 percentage points in the last months of the year from the old levels recorded before the State Bank changed its regulatory interest rates.
Accordingly, the average interest rate for 12-month term deposits at commercial banks might hit 6.1-6.3% by the end of the year, which is still lower than the pre-pandemic 7% rate per year, according to the broker.
VNDirect expected the deposit rate would continue going up in 2023, as the State Bank would raise its regulatory interest rate to rein in inflation and stabilize the exchange rate while commercial banks need more capital for lending activities amid robust economic recovery.
It predicted deposit interest rates may increase by 0.5 percentage points next year, and the rate for 12-month term deposits would rise to 6.6-6.8% per year by the end of 2023, still below the pre-pandemic 7% per year.
- Read More
Germany’s household product firm QuickPack to invest $32 mln in Vietnam
Germany’s QuickPack, a specialist for household goods and hygiene products, will invest €30 million ($31.8 million) in Vietnam’s Mekong Delta province of Long An.
Industries - Tue, November 19, 2024 | 4:24 pm GMT+7
Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers
Malaysian millionaire Vincent Tan has evinced investment interest in a residential project owned by convicted tycoon Truong My Lan, chairwoman of Van Thinh Phat Group, lawyers for the latter have disclosed.
Real Estate - Tue, November 19, 2024 | 4:17 pm GMT+7
‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects
Limited consultations between state agencies and the parliament’s primary focus on wording are issues with Vietnam’s legal framework adversely affecting property and infrastructure projects, say experts and corporate leaders.
Economy - Tue, November 19, 2024 | 3:40 pm GMT+7
President Xi Jinping hastens construction of 3 Vietnam-China rail routes
Chinese President Xi Jinping has called for more substantial cooperation between China and Vietnam, including the pacier implementation of three railway routes linking the two nations.
Infrastructure - Tue, November 19, 2024 | 3:08 pm GMT+7
Vietnam developers offer deferred principal payments, interest support to boost year-end sales
Vietnamese housing developers are offering several incentives including deferred principal payments and interest support to stimulate demand and boost liquidity as the year nears its end.
Real Estate - Tue, November 19, 2024 | 2:29 pm GMT+7
Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory
Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.
Companies - Tue, November 19, 2024 | 11:00 am GMT+7
Techcom Securities becomes largest broker in Vietnam by capital base
Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.
Finance - Tue, November 19, 2024 | 9:11 am GMT+7
Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec
Vietnam's airports operator ACV expects to earn $145 million from non-aviation services this year, accounting for around 18.83% of its total revenue, which is modest compared to other countries, said deputy general director Nguyen Duc Hung.
Companies - Tue, November 19, 2024 | 7:45 am GMT+7
The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment
A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.
Companies - Tue, November 19, 2024 | 7:00 am GMT+7
Indonesia promises Asia-Pacific investors more incentives
Indonesian President Prabowo Subianto recently told the press that he will create more incentives and expand special economic zones (SEZs) so as to lure investors from Asia-Pacific.
Southeast Asia - Mon, November 18, 2024 | 11:01 pm GMT+7
Indonesia, Brazil enhance aviation cooperation
Indonesia's state-owned aircraft manufacturer, Dirgantara Indonesia (DI), and Brazilian aerospace company Embraer have signed a memorandum of understanding (MoU) to expand collaboration in the commercial aviation sector.
Southeast Asia - Mon, November 18, 2024 | 11:00 pm GMT+7
Indonesia eyes to become member of BRICS
Indonesian President Prabowo Subianto has shown his country’s desire to become a member of the BRICS - the alliance of major emerging economies initiated by Brazil, Russia, India, China, and South Africa.
Southeast Asia - Mon, November 18, 2024 | 10:57 pm GMT+7
Former Party chief, chairman of Vinh Phuc province face disciplinary action
Vietnam’s Central Inspection Committee has proposed disciplining Pham Van Vong, former Party chief of Vinh Phuc, and Phung Quang Hung, former chairman of the northern province, for violations related to Phuc Son Group.
Politics - Mon, November 18, 2024 | 9:17 pm GMT+7
Shaping a waterway into a key shipping channel: Viconship gets dredging nod
A major dredging project will allow safer ship navigation and increased cargo transportation capacity on the Hai Phong shipping channel, thereby enhancing competitiveness of Vinconship’s port system, says the company.
Companies - Mon, November 18, 2024 | 7:08 pm GMT+7
Former assistant to State President appointed general director of state-owned financial firm HFIC
Truong Tuan Anh, an official at the State President Office and former assistant to a state president, has been appointed general director of Ho Chi Minh City Finance and Investment Stated-owned Company (HFIC).
Companies - Mon, November 18, 2024 | 5:35 pm GMT+7
MBBank’s takeover of weak OceanBank to have limited impact on its credit profile: Fitch
Military Commercial Joint Stock Bank's (MBBank) takeover of Ocean Commercial Bank Limited (OceanBank) will have limited financial impact on the former’s credit profile, Fitch Ratings said Monday.
Banking - Mon, November 18, 2024 | 5:06 pm GMT+7
- Consulting
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
In trade and investment, ASEAN and China are better together
-
AI can be a game changer for Vietnam tourism
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?