Foreign Banks in Vietnam Reduce Interest Rates

Several foreign-owned banks have also joined a race, which is currently captured by almost all domestic commercial banks, to reduce interest rate for both Vietnamese dong and U.S. dollar-based deposits, the Tuoi Tre newspaper reported.

 

On October 6, the Hong Kong-Shanghai Banking Corporation (HSBC) announced to decrease its savings interest rates in both VND and U.S. dollar.

 

Accordingly, VND depositors with a three month term now have an interest rate of 15 per cent per annum, and six month terms now have the highest interest rate of 15.25 per cent per annum. For U.S. dollar, the highest interest rate of 3.9 per cent per annum is given for six month term, while 3.7 per cent per annum is given for a three month term.

 

Meanwhile, Viet-Thai Joint Venture Bank currently has the highest VND mobilization interest rate of 17.4 per cent for a three month term and a VND lending interest rate is 19.5 per cent per annum.

 

Since the end of last week, Military Bank (MB) reduced by its interest rates by 0.2-0.7 per cent per annum and its maximum VND mobilization interest rate stood at 17.5 per cent per annum for a three month term. For USD, the bank decreased its rates by 0.1-0.5 per cent per annum and the maximum interest rate was 5.7 per cent per annum for a 12 month term.

 

Moreover, many banks such as the Bank for Investment and Development of Vietnam (BIDV), the Saigon Joint-Stock Commercial Bank (SCB) and the Ho Chi Minh City Housing Development Bank issued bills and deposit certificates with new interest rates for one-month to 365-day terms to mobilize capital and meet the demands of capital lending for businesses and personal customers in the remaining months of this year. (Youth)