Rising interest rates cause headache for enterprises in Vietnam
Growing mobilization rate could lead to an increase of 0.5 - 1 percentage point per year in lending rates in the remaining months of 2018, depending on each bank.
Vietnamese banks have been raising mobilization interest rates since October, causing concern for enterprises that the lending rates could increase in tandem, Thanh Nien newspaper reported.
Illustrative photo.
|
SHB also increased the VND mobilization rate by 0.1 percentage point per year for short-term deposit from 3 to 5 months.
Similarly, Vietnam Prosperity Commercial Bank (VPBank) also increased its mobilization rate for certain deposit terms by 0.1 percentage points per year. Notably, a mobilization rate of over 7% per year is applied for deposit of over 6-month term.
Orient Commercial Bank (OCB)’s mobilization rate increased by 01. – 0.2 percentage points per year, a deposit of 36-month term would have an interest rate of 7.7% per year.
Others major banks including Bank for Investment and Development of Vietnam (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietcombank) and Joint Stock Commercial Bank for Foreign Trade of Vietnam (VietinBank) increased their respective mobilization rate by 0.1 – 0.3 percentage points per year.
Notably, the inter-bank rate has also increased since the beginning of November, in which the overnight rate recorded on November 16 stood at 4.74% per year, 5.09% for one-month term, 5.58% for three-month term, and 5.8% for 6-month term.
Growing mobilization rates would put pressure on higher lending rates. Nguyen Hinh Phu Lam, director of Hai Binh Gia Lai company, said an increase in mobilization rate in combination with growing transportation and financial costs could cause an increase of 5 – 7% in product prices.
Bui Quang Tin, lecturer at Banking University of Ho Chi Minh City, expected the lending rates would increase by 0.5% - 1 percentage point per year in the remaining months of 2018, depending on each bank.
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.
- Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
- IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
- Vietnam's credit growth up 10% in 10 months
- Building Hanoi's smart city with smart banking
- Vietnam stock market clears major legal hurdle to potential upgrade
- Cashless parking in Hanoi: Good model fuels smart transport