Updates on Vietnam banking sector Q1/2022

Highlights on Vietnam's banking sector in Q1/2022

• Interest rate movements: O/N interest rates in the first months of the year were at a high level compared to the average of the past 3 years.

• However, from mid-May until now, O/N interest rates have continuously decreased sharply; partly because the disbursement of loan contracts to customers is slowing down at some commercial banks due to "touching the credit room", and partly thanks to the amount of residential deposits that are "returning" to the banking system after interest rates Dynamic deposit mobilization is gradually inching up, especially in long terms.

• USD/VND exchange rate fluctuations in the first months of the year

• After falling in T01, the USD/VND rate started to go up after the Lunar New Year. Especially from the 2nd week of April, the exchange rate fluctuated strongly due to the pressure of USD appreciation in the international market. The USD/VND exchange rate on the free market sometimes touched VND 24,000.

• However, the exchange rate has gradually stabilized and moved sideways in the last 10 days, after the SBV continuously adjusted down the central exchange rate since mid-May.