According to data of the State Bank of Vietnam (SBV), in the first two quarters of 2020, the deposits of customers at credit institutions reached more than 9,200 trillion dong, up by 4.75 percent compared to the beginning of the year.
Notably, the deposits of economic organisations soared in May and June. By the end of June, the deposits of businesses reached more than 4,130 trillion dong, up by 4.32 percent compared to the beginning of the year. Meanwhile, the growth of deposits of economic organisations by the end of April was still negative 3.94 percent compared to the beginning of the year. Thus, in just two months of the second quarter, the deposits of businesses in the banking system sharply increased by 8.6 percent compared to April.
Meanwhile, residential deposits still grew steadily to reach 5,000 trillion dong by the end of June, up by 5.09 percent compared to the beginning of the year.
Compared to the same period of previous years, the growth of deposits this year is much lower. In the first six months of 2019, the deposit growth of the banking system was 6.68%, while it was only 4.75 percent in the same period of 2020.
Deposits increased slowly in the context of the continuous decline in deposit interest rates. The current term deposit interest rates are popular at 3.7 4.25 percent per annum for terms from one to less than six months; 4.4 6.4 percent per annum for terms from six months to less than 12 months, and six percent to 7.3 percent per annum for terms of 12 months or more. Compared to the end of last year, the deposit interest rates have fallen by about one to 1.5 percent per annum.
The modest growth of deposits is also due to the very low credit growth. The demand for capital of businesses has declined due to the impact of the Covid-19 pandemic. According to the SBV’s statistics on its website, the credit growth in the first half of the year was only 3.65%, much lower than the 7.36 percent recorded in the same period of 2019, and 7.86 percent in the same period of 2018.
