HCMC – August saw a surge in stock market entrants, with more than 150,000 new securities trading accounts opened, according to the Vietnam Securities Depository and Clearing Corporation.
Financial analysts attribute this rise to factors such as a steep fall in deposit rates and four interest rate cuts by the State Bank of Vietnam this year, poor credit demand in the first half of 2023, and the Government’s public investment boost and expansionary fiscal policy.
These factors have encouraged investors to seek alternative investment opportunities.
Data from VNDirect showed that, as of August 24, deposit rates for 12-month terms at commercial banks had decreased to 6% annually, 1.9 percentage points lower than in December 2022.
Meanwhile, lending rates have also decreased by 50 to 100 basis points since late 2022.
The securities brokerage expects lending rates to fall by 100 to 150 basis points in the fourth quarter due to the rapid decline in capital costs for commercial banks, potentially indicating a recovery in consumption and investment.
Source: The SaigonTimes