VP Bank, for example, is offering an interest rate of 4.8 percent on a 12-month term deposits, Zing News is reporting. Note that Vietnam has a target for inflation of 4 to 4.5 percent.
This suggests that, despite a jump in interbank interest rates in February, banks still have abundant cash on hand. Notably credit growth fell .6 percent in January and in the context of these bank interest rates it seems that credit growth is unlikely to turn around. The credit growth target for this year is 15 percent and for the first quarter it is 4.4 percent.