Citizens' deposits reach new historic peak

By Quynh Trang June 3, 2024 | 03:45 am PT

Citizens’ deposits rose 1.6% from the beginning of the year to a new historic peak of VND6.64 quadrillion ($261 billion) by the end of February, official data shows.

It was 7.4% higher year-on-year, according to latest data from the State Bank of Vietnam (SBV).

Corporate deposits were 4.66% lower than the beginning of the year at VND6.52 quadrillion.

In the first quarter many banks saw deposits rising below 5% compared to 8-19% in the same period last year.

Deposit interest rates are hovering around 5% for a 12-month term.

Dinh Duc Quang, managing director of currency exchange at lender UOB, forecasts that deposit rates will rise 0.5-1 percentage points in the second half this year as credit recovers.

Vietnam’s credit growth was under 2% by the end of April, which was lower than the same period last year. The central bank targets to bring the figure up to 5-6% by the end of June.