According to data from the State Bank of Vietnam (SBV), total money supply reached more than VND19.57 quadrillion ($770 billion) by the end of January 2026, up 0.69% compared to the end of the previous year.

Household deposits continued rising to more than VND10.38 quadrillion ($408 billion), while deposits from economic organizations declined to around VND6.08 quadrillion ($239 billion).

Notably, at the beginning of 2026, many banks raised deposit interest rates, especially for medium- and long-term tenors, in an effort to attract more capital.

Earlier, the SBV reported that by mid-May 2026, total outstanding credit in the economy had reached approximately VND19.4 quadrillion ($763 billion), up 18.3% year-on-year. Meanwhile, total capital mobilization across the banking system stood at around VND18 quadrillion ($708 billion), increasing nearly 14.9%.

One significant concern is that Vietnam’s credit-to-GDP ratio is currently among the highest within lower-middle-income countries, exceeding 144% as of March 2026. This indicates that the economy remains heavily dependent on bank financing.

According to experts, excessive reliance on bank credit could increase risks for the financial system because bank funding sources are largely short term, while businesses and the broader economy typically require medium- and long-term capital.

The SBV also noted that the banking sector is facing numerous challenges amid volatile global economic conditions, persistently high international interest rates and rising geopolitical risks, all of which are creating pressure on inflation control and monetary policy management.

Domestically, slower deposit growth is also putting additional strain on funding balances at credit institutions.

Against that backdrop, the central bank said it remains committed to controlling inflation, maintaining macroeconomic stability, supporting growth and ensuring the safety of the banking system.

In terms of lending activity, credit growth in recent years has consistently outpaced deposit mobilization, increasing pressure on liquidity and funding balances throughout the banking system.

As a result, pressure on liquidity and interest rates is continuing to rise.

In response, the SBV has recently and repeatedly instructed credit institutions to lower lending rates. The central bank has also directed regional branches to strengthen supervision of interest rate reductions and review banks maintaining high deposit and lending rates for potential targeted inspections if necessary.

Tuan Nguyen