Many commercial banks are racing to hike deposit interest rates for the US dollar, creating new high interest level in Vietnam, state media said on May 30.
The Vietnam Bank for Private Enterprises (VPBank) raised the interest rate for 12-month USD deposits to 7 per cent per annum, the Thanh Nien newspaper said.
Meanwhile, the Asia Commercial Bank (ACB) increased the rates to 7.05 per cent per annum from 6.65 per cent for deposits of less than 12 months, and to 7.1 per cent for 12 months, it added.
Some other banks such as Sacombank, DongABank, Southern Bank and VIB Bank have also lifted up the interest rates for the greenback.
Southeast Asia Bank (SeABank) has boosted the rate for US dollar deposits to 7.45 per cent a year for six-month term, and to 7.5 per cent for 13-month term, one of the highest levels among local banks.
Viet A Bank decided May 29 to hike the highest rate for the 12-month deposits to 12 per cent a year.
Banks said they raise the deposit rates because the local demand for the dollar is high. However, they have not attracted a large amount of USD despite the higher interest rates.
VPBank general director Le Dac Son said that Vietnam's trade deficit was too high in the first months of this year, prompting high demand for the dollar to settle import contracts.
The US dollar has appreciated against Vietnam dong recently. The VND/USD exchange rate hit new peak at 17,700 on May 27 in the unofficial market.
In addition, local demand for the dollar has also increased as a hedge against inflation, which soared 25.2 per cent on year in May. (Young People, VnEconomy)
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