Interest rate race has Vietnamese businesses on edge
In anticipation of the central bank’s possible move to further limit the use of short-term deposits for loans, banks in Vietnam have rushed to attract savings with higher interest rates, starting a competitive race that might soon hurt many borrowers.
Latest figures from the central bank’s office in Ho Chi Minh City showed that local commercial banks have offered as high as 8.2 percent a year for deposits longer than 24 months.This is the first time since 2014 dong deposit rates have exceeded 8 percent.
