Race to lift interest rates heats up

Liquidity pressure is increasing in Vietnam’s banking system. The maturity of USD sales contracts caused a corresponding amount of VND to be withdrawn, pushing up the interbank interest rate. In September, savings interest rates were raised to a new high at many banks, the highest being 8.8 per cent per annum at ABBank. The bank said requirements include deposits being at least VND1.5 trillion ($63.23 million) on a 13-month term, with interest received at the end of the period.