Vietnam is grappling with rising interest rates, impacting both the economic climate and options for potential homebuyers. The latest figures show interest rates for savings and loans have significantly increased, with banks like Sacombank currently offering various rates for different terms.
Specifically, during February 2025, Sacombank's interest rates for personal savings at their branches range from 0.5% to 5.2% per annum. For shorter terms, less than one month, the interest rate is as low as 0.5%, whereas for longer terms, such as 36 months, it rises to 5.2%. Online savings options are also available, offering slightly higher interest—up to 5.7% per annum for 24-36 months.
Notably, the average loan interest rates have followed suit. Recently published data indicates the average lending rate for new disbursed loans at Sacombank reached 7.26% per annum, reflecting a minor increase compared to the previous month. This 3.02% spread between savings and loan rates mirrors the challenges banks face with the cost of input as profit margins shrink due to rising operational expenses.
Concurrently, the government is actively encouraging financial institutions to provide favorable lending packages, especially targeted at young homebuyers aged 35 and under. The Prime Minister has called for the State Bank of Vietnam and commercial banks to offer credit packages to stimulate the housing market amid growing economic pressures.
According to HoREA (Ho Chi Minh City Real Estate Association), there is significant demand for affordable housing loans for first-time buyers. They have proposed the implementation of reasonable commercial borrowing rates—between 6% and 7% per annum—over 10 to 15 years, with the collateral secured by the property itself. This initiative aims to lower barriers for younger citizens seeking their first homes.
For social housing projects, the State Bank has set the preferential loan interest rate at 4.7% per annum for this year only, involving 17 participating commercial banks, including major players like BIDV, Vietcombank, and VietinBank, all committed to adjusting their interest rates to attract credit seekers.
For example, Agribank has been proactive, offering long-term loans for property purchases at fixed rates of 6% for the first year, rising slightly afterwards. Depending on the financial institution, loan rates can be set as low as 5% for the first six months, which is competitive but may not last as pressures to raise rates linger.
A broader view reveals some banks are already beginning to increase their loan rates, with BVBank announcing rates of 7.5% per annum initially, climbing higher depending on duration. While some institutions offer initial low rates, these tend to rise after the first year, pushing borrowers to reconsider their long-term financial strategies.
Despite the apparent demand for housing loans, banks stand at the crossroads, needing to balance affordability with the current economic realities, such as rising costs and declining profits. Financial analysts expect the trend of increasing rates may continue, which directly impacts the affordability of loans for prospective buyers.
Looking to 2025, experts project loan interest rates may stabilize due to lower inflation and steady deposits. A key insight from analysts at SSI indicates there is little expectation for significant reductions in policy rates, meaning the cost of borrowing might remain elevated. The focus will now shift to how effectively banks can manage liquidity pressures and maintain attractive lending options for consumers.
Consequently, both businesses and individual borrowers will need to navigate this new terrain with consideration as they formulate their financial plans. The advocacy for advancing access to credit remains strong, but so too does the caution required to manage the increasing costs associated with loans.
Hence, as Vietnam's economy maneuvers through these shifting interest rates, the interplay between commercial banking policies and government regulations will be pivotal for the future stability of the property market and economic growth.