Nearly a third of the bank deposits in Viet Nam are in foreign currencies, according to a State Bank report, yet the Vietnamese dong earns a much greater rate of interest than, say, the US dollar. At the moment a three-month term deposit in dong pays between 7.5 and 8.4 percent annual interest, whereas the dollar earns from 4 to 4.5 percent. Of course the benefit is eroded a little by the fact that the dong has weakened against the greenback over the past five years, but not to that great an extent. If you deposit VND100 million in a three-month term savings account, at maturity you get back VND102.1 million in principal and interest. Doing the same with the equivalent in US dollars only gets the same as VND101.5 million. So keeping your money in dollars costs you VND600,000 in just three months. Even though deposits in Vietnamese currency yield more, many people are unwilling to convert their foreign currency for fear that the interest rate for the dong will change … [Read more...] about Is It Time to Deposit Your Cash in Vietnamese Currency?
Deposit 10000 cash in bank
Finding confidence in banks (19-03-2009) Le Quoc Ly, director of the Ministry of Planning and Investment's Finance and Monetary Department, spoke to Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about the banking sector. What happens if people don't believe in the finance and banking sector? The banking sector is the financial backbone of the community. If this sector is weak, it will affect the whole economy. Once people perceive it has a problem they start to lose faith and usually begin to buy gold and other precious commodities. Individual actions would probably have little effect on the economy. But if they lead to mass withdrawals, the situation could easily become serious. Viet Nam is a developing nation and it needs capital. Bank savings are an important way of enhancing the internal strength of the nation. How should we encourage people to deposit their money in banks? In my opinion, the key factor is to make people feel safe about depositing their money in banks. In the … [Read more...] about Finding confidence in banks
Over 20 banks in Vietnam are still operating with a chartered capital lower than the required limit of VND3 trillion which is set out by Decree 141/2006/ND-CP. The decree stated all banks were to have achieved a minimum chartered capital of VND3 trillion ($150 million) by the end of 2010. However, in late December 2010, the Vietnamese government gave a 12-month extension. Although authorities have now extended the banks' deadline to raise chartered capital, at least five local banks had already done so by the end of last year. Among these were the local commercial banks HDBank, VietBank, DaiA Bank, Tien Phong Bank and Standard Chartered Bank. According to Tien Phong Bank, raising required chartered capital levels from VND2 trillion ($100 million) to VND3 trillion ($150 million) would provide additional funds for improving infrastructure, opening more branches nationwide and extending an increased number of loans to customers. Tien Phong Bank's capital raising was … [Read more...] about Early birds catch worm in bank capital law changes
Vietnam's central bank has bought VND6.52 trillion of debt from banks this week, or one-fifth of the cash it injected in the market last week to relieve a liquidity crunch. It bought the debt via open market transactions between Monday and Wednesday at rates of 10-11 percent, compared with 13-15 percent last week, when it injected VND34.46 trillion in banks, central bank data showed . The lower cash injection came with an improvement in liquidity, as major interbank market lenders cut their overnight lending rates to 8-10 percent, from 8.2-10 percent on Monday and 10-15 percent on Feb. 18. … [Read more...] about Vietnam central bank reduces cash injection in banks
>> Lending interest rates up, troubling enterprises >> Banks rush to compete as interest rates reach 12% A number of banks in Vietnam are offering negotiable deposit rates in a bid to attract more customers It is difficult to get loans this time The move came after the State Bank of Vietnam raised their base interest rate to 9% per year on November 5. Deposit interest rates surpass 12% per yearA general director of a commercial joint stock bank in Hanoi said, “The popular deposit interest rate is at 12% per year, but a number of banks still accept the higher levels to lure in more deposits”.In reality, deposit interest rates of banks are much higher than those fixed. Customers who deposit VND100 million (USD5,000) or more can negotiate interest rates with banks. "This has created an unhealthy competition which forces big banks and credit organisations to follow small banks,” he … [Read more...] about Negotiable interest rates on deposits latest draw from banks