HANOI, July 16 (Xinhua) -- Vietnam's period of cheap money is coming to an end as deposit interest rates are increasing, causing lending interest rates to be difficult to maintain at the same low level as at the beginning of this year, Vietnam News reported Tuesday, citing experts.
In July, many domestic banks continued to adjust the rates. Some increased the rates for deposits under six months to 4.7 percent per year, close to the cap of 4.75 percent per year prescribed by the State Bank of Vietnam, the report said.
Vietcombank Securities Company forecasts that deposit interest rates in the third quarter of 2024 will continue to increase by about 0.3-0.5 percentage points.
Banking expert Nguyen Tri Hieu forecast deposit interest rates may continually increase in the second half of this year, which will cause lending interest rates to rise.
The Vietnamese bank deposits reached a new historic peak of 16 quadrillion Vietnamese dong (628.5 billion U.S. dollars) as of the end of March, according to the central bank. ■
