Vietnam

Bảo hiểm tiền gửi chi trả sớm, không cần chờ ngân hàng phá sản

VN Express | Local Language | News | Dec. 12, 2025 | UndeterminedBankruptcy-Insolvency

On December 10, the National Assembly passed an amended Deposit Insurance Law with over 94% approval. Effective from May 1, 2026, the law introduces three cases for deposit insurance payouts: when the State Bank approves a bankruptcy plan for a credit institution or foreign bank unable to pay deposits; when the State Bank suspends deposit-taking activities of a credit institution under special control that has losses exceeding 100% of its charter capital; and when the regulator requires payment to ensure system safety, public order, and social safety. These additions aim to enable timely payouts and stabilize depositor confidence.

The Governor of the State Bank, Nguyen Thi Hong, was assigned to set the maximum payout limit periodically. Currently, the limit is 125 million VND, although some delegates had proposed increasing it. The amended law also expands the role of the deposit insurance organization to include handling credit institutions under early intervention and special control, managing crises, and evaluating recovery and restructuring plans. The organization can provide zero-interest special loans to insured banks and is permitted to borrow unsecured funds at zero percent interest from the State Bank to make early payouts and cover shortfalls in the operational reserve fund.

Nhiều ngân hàng nâng lãi suất kỳ hạn ngắn lên kịch trần

VN Express | Local Language | News | Dec. 12, 2025 | UndeterminedFinancial System Problems

In early December 2025, multiple banks raised their short-term savings interest rates to the maximum ceiling of 4.75% per year, as set by the State Bank, to attract deposits. Phuong Dong Bank (OCB) adjusted rates by 0.4% to 0.9%, offering 4.75% for deposits between 2 to 5 months with amounts of 500 million dong or more, and higher rates for longer terms. Sacombank increased rates by 0.3% to 0.5%, with 3 to under 6-month deposits reaching the 4.75% ceiling and 12-month deposits at 5.8%. Other banks such as Viet Capital Bank, National Citizen Bank (NCB), VIB, NamABank, MBV, and CIMB also implemented similar rate hikes for short-term deposits.

Year-end promotional campaigns offering additional interest, cash bonuses, and gifts have intensified competition among banks to attract deposits amid a peak lending season and rapid credit growth. According to Vietnam Prosperity Bank (VPBank), credit expansion is outpacing deposit growth, creating pressure on liquidity and interest rates. By November 2025, credit growth exceeded the 16% target, with nearly 70% directed to the services sector. VIS Rating identified heightened liquidity risk for smaller banks reliant on short-term market funds, as the sector’s loan-to-deposit ratio (LDR) reached a five-year high of 111%, indicating ongoing liquidity pressures.

As saving interest rates rise, lending rates have also gradually increased by 0.5% to 1% compared to the previous month. Large banks have ceased subsidized low-cost housing loans, and some private banks are experiencing upward movement in floating loan interest rates. This reflects the broader tightening of credit conditions in response to the accelerated credit growth and liquidity challenges in the banking sector.

Vietnam Net - E | English | News | Dec. 12, 2025 | Regulation

On December 10, the National Assembly passed an amended Law on Public Employees, which will take effect on July 1, 2026. The revised law emphasizes job positions as the primary basis for recruitment, assignment, evaluation, training, promotion, and policymaking for public employees. A job position is defined according to the duties and functions of public service units.

The law introduces stringent rules governing public employees' participation in activities outside their primary institutions. Public employees are now permitted to sign labor or service contracts with other organizations, invest in, manage, or operate enterprises and institutions, and practice their professions independently, provided such actions comply with sector-specific laws and anti-corruption regulations. Approval from immediate superiors or managing authorities is required when terms are not specified in employment contracts.

Additional provisions allow public employees in science, technology, and education sectors expanded rights under relevant legal frameworks. The law also establishes a comprehensive evaluation system for public employees, using job performance, public attitude, innovation, accountability, and public interest as criteria. Digital tools will aid in transparent and open assessments, resulting in performance categories that influence training, promotions, salary adjustments, commendations, or dismissal.