After the State Bank of Vietnam’s decision to increase the statutory reserve rate for dong and foreign currencies deposits of local banks and US Federal Reserve rate increases (1.75%), the dong and forex deposit growth in local commercial banks is still stable.
The short-term interest rate for dong deposits of commercial joint stock banks at present is 0.56–0.74% a month; for US dollar deposits is 1.5–1.75% a month. Recently, four state commercial banks had to sit a meeting to sign an agreement to maintain the base rate for dong deposits at no more than 0.63% a month.
Therefore, the deposit inflow has signalled to switch to joint stock banks because the rates of commercial joint stock banks are higher than that of state banks. To control the base rate, SBV-HCM City Branch has requested the Vietnam Bankers’ Association to make a commitment on the ceiling deposit interest rate between state banks and joint stock banks.