On 30 September 2024, the Governor of the State Bank of Vietnam (“SBV”) issued several Circulars adjusting interest rates for bank deposits at credit institutions (“CIs”) and branches of foreign banks. These include:

• Circular No. 46/2024/TT-NHNN: Governs interest rates on bank deposits in U.S. dollars.

• Circular No. 47/2024/TT-NHNN: Amends Circular No. 04/2022/TT-NHNN regarding interest rates for early withdrawals.

• Circular No. 48/2024/TT-NHNN: Governs interest rates on bank deposits in Vietnamese dong.

The applicable interest rate under the above Circulars is as follows:

• For U.S. Dollar deposits, the interest rates must not exceed the SBV’s stipulated maximum rate for organizations and individuals in each period.

• For Vietnamese Dong deposits, the interest rates are determined as follows:

(i) For deposits with an undefined term, terms under one month, or terms from one to under six months, the maximum rate is set by the SBV for each period and type of CI.

(ii) For deposits with terms exceeding six months, interest rates are determined based on market supply and demand.

The maximum interest rates apply to the maturity payment method, with other payment methods converted accordingly.

For interest agreements made before 20 November 2024 (the effective date of these Circulars), customers and CIs may continue following existing terms until maturity. If a customer does not withdraw their deposit upon maturity, the new interest rates will apply under the updated regulations.

Effective from November 20, 2024, these regulations require CIs to:

• Publicly display applicable deposit interest rates at transaction locations within their operational network.

• Publish the interest rates on their official websites (if applicable).

Dentons LuatViet acknowledges and thanks Junior Associate Hien Vo for her contribution to the article.