Statistics of the State Bank of Vietnam (SBV), in the last week of May 2019, the dong mobilisation interest rate was popular at 0.5 percent to one percent per annum for demand deposits and deposits with terms of less than one month; 4.5 5.5 percent per annum for deposits with terms from one month to less than six months; 5.56.5 percent per annum for deposits with terms from six to less than 12 months; and 6.67.3 percent per annum for deposits with terms of over 12 months.
In the market, some banks announced the highest interest rate of up to 8.5 8.7 percent per annum. However, to get this rate, customers often have to satisfy uneasy conditions, such as being VIP customers, depositing from one to five billion dong and more, depositing online, etc.
According to experts, mobilisation interest rates have been high since the beginning of the year because the demand for medium and long-term capital is large. In addition, banks’ savings channel is facing fairly strong competition from other investment channels, especially bond channel.
Statistics of MB Securities Joint Stock Company (MBS) showed that in the first five months of 2019, 61.037 trillion dong corporate bonds were issued, in which many businesses, particular realtors issued bonds with yields reaching up to 11 14.5 percent per annum.
In particular, the group of banks issued 17.6 trillion dong of bonds. According to survey, the popular bond yield offered by banks is 6.4 7.5 percent per annum at terms of three months and more, mostly five years.
Meanwhile, real estate, construction and infrastructure businesses issued 16.2 trillion dong. This is also the group of businesses with the highest coupon interest rate, commonly being above 10 percent per annum.
The highest bond yield belongs to Phat Dat Real Estate Development (PDR) with coupon interest rate reaching up to 14.5 percent per annum on one-year term with a total issuing value of 200 billion dong. In early June, PDR continued to approve the issuance of 150 billion dong of non-convertible bonds at yield of 14 percent per annum. The term is one year from the issuance date. Interest rate is paid every three months on the day of interest payment. This is the fourth bond issuance of PDR since the beginning of the year.
Many other businesses also offered high bond yields such as Khang Dien House Trading and Investment Joint Stock Company (KDH) with two-year bonds and yield of 12 percent per annum, interest paid every six months.
In addition, the group of securities companies also mobilised 15.748 trillion dong via bond issuance in the first five months of the year with coupon interest rate from eight to 11.3 percent per annum with popular terms of one to three years.
VNDIRECT Securities Joint Stock Company (VNDirect) takes the lead with two issuances worth 800 billion dong, terms of one to three years, and yields of 9.5 11.3 percent per annum. The annual general meeting of VNDirect also approved the plan to issue 660 billion dong of convertible bonds in 2019.
