Vietnam's Banks Raise Interest Rates Amid Inflation

Many banks in Vietnam have increased deposit interest rates by 0.1 to 0.6 percentage points amid the growing demand for funds and inflationary pressure, local media reported on Wednesday

HANOI, (UrduPoint / Pakistan Point News - 18th May, 2022 ) :Many banks in Vietnam have increased deposit interest rates by 0.1 to 0.6 percentage points amid the growing demand for funds and inflationary pressure, local media reported on Wednesday.

The rates have increased sharply since the beginning of this month, with the peak at 6.5 percent to 7.4 percent, the daily newspaper Vietnam News reported.

Currently, NamABank offers the highest rate with 7.4 percent interest for customers depositing money via its e-banking application for 16 to 36 months.

Experts said the increase in deposit interest rates came at a time when credit demand was rising significantly.

It is forecasted that the inflationary pressure and fierce competition from other asset classes such as real estate and securities would force deposit interest rates up.

Deposit interest rates are forecasted to rise by 0.3-0.5 percentage points to 5.9 percent-6.1 percent this year, according to the news report.