Amid the deposit interest rate reduction among Vietnamese banks, the rates at foreign banks in Vietnam have slightly decreased in line with the trend.
Vietnam's banking sector has cut deposit interest rates by 1-1.2 percentage points and loan interest rates by 0.5-0.65 percentage points in the first four months of this year, but further cuts are needed, said Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV).
Average deposit rates are now 6-6.1%, while lending rates stand at 9-9.2%, according to Tu. "Notably, state-controlled commercial banks have slashed interest rates by 1-1.5 percentage points for deposits and 1.5-2 percentage points for loans on average, the SBV leader said.
In tandem with the move, foreign banks in Vietnam have reduced or maintained their already lower deposit rates.
The figures at Singapore-invested United Overseas Bank (UOB) Vietnam went down to the range of 2% and 7%, starting April 28. Terms of six, nine, 12, 13, and 18 months have interest rates of 6-7%. One, two, three, and four-month terms are subject to interest rates of 2-2.3%. Previously, the interest rates at the lender were between 5.5% and 7.9%.
Malaysia-backed Hong Leong Bank Vietnam reduced the rate to 5.3-5.4% for terms between one and three months and 6.8% for terms between six and 13 months. Earlier, the bank provided the deposit interest rates at 5.5-5.7% for terms between one and three months and 8% for terms between nine and 36 months.
Public Bank Vietnam, also a Malaysian creditor, slashed the rates to between 5.3% and 8.6% for terms between one and 60 months. The interest rates between 5.3% and 5.5% are available for terms between one and five months.
Higher rates from 7.5% to 7.7% are offered to terms between six months and 11 months. The lender offers interest rates of 8.4% for terms between 12 and 17 months, 8.6% for 18-month term, and 7.9% for terms between 24 and 60 months.
Prior to this, the figures at the bank were between 5.8% and 8.8%.
Starting May 8, Thailand's Kasikornbank (KBank), a relatively new player in Vietnam, applies the deposit interest rates at 5% for one-month terms, 5.5% for three-month terms, 6% for six-month terms, 6.3% for 12-month and 18-month terms, and 6.75% for 24-month and 36-month terms. Previously, the rates were higher for terms of six, 12, and 18 months, at 6.5%, 6.75%, and 6.75%, respectively.
The rates at HSBC and Shinhan Bank remained unchanged. At HSBC, the rates are 0.1% for terms between seven and 21 days; 1% for one-month and two-month terms; 2.25% for three-month terms; 2.75% for terms between six and nine months; and 3.75% for terms of 12, 18, 24, and 36 months. The rates are about 0.1-0.25 percentage points higher for premier customers.
South Korea-backed Shinhan Bank Vietnam offers rates at 3.9-6.8%. For two-month terms, the figures are between 3.9% and 4.9% for online or offline deposits. Similarly, the rates are between 4.4% and 5.5% for three-month terms, 5.4% and 6% for six-month terms, 6% and 6.8% for 12-month terms, 5.4% and 6.4% for 18-month terms, 5.4% and 6.2% for 24-month terms, and 5.3% and 6% for terms between 36 and 60 months.
Buckling the trend, Standard Chartered Bank Vietnam’s figures have slightly increased to between 1.5% and 4.9%. Online deposits of 12 months are subject to a promotional rate of 5%. Terms between one and two months see deposit rates of 1.5% and 2%, respectively, unchanged from those in March.
Interest rates of 2.5%, 3.9%, and 4.05% are offered for three, six, and nine-month terms, remaining the same from March. Terms of 17, 18, 24, 30, and 36 months have rates of 4.5%, 4.6%, 4.7%, 4.8%, and 4.9%, respectively, up by 0.1 percentage points versus those in March.