On August 23 the State Bank of Việt Nam set the benchmark exchange rate at VNĐ23,127 to the dollar, weakening the đồng by VNĐ5 compared to the previous five days (August 19).
The competition in the Vietnamese finance and banking market has become fiercer as existing foreign institutions are rushing to increase capital even as new entrants continually join the market.
Việt Capital Commercial Joint Stock Bank (VietcapitalBank) offers the highest deposit interest rate of any bank: 8.6 per cent.
Experts say Việt Nam has many weapons in its armoury to stabilise exchange rates.
Since the beginning of the year the State Bank of Việt Nam has been increasing the reference rate of the đồng against the US dollar, and the Vietnamese currency has appreciated 0.43 per cent as a result.
On December 11 the State Bank of Việt Nam reduced the value of the đồng against the US dollar by VNĐ9 from the previous day to VNĐ22,775 (US$1).
Though the interest rates on government bonds with maturity terms of one to 15 years have increased in recent times, there seems to be little appetite for them among investors.
According to statistics from the State Bank of Việt Nam (SBV), as of May, State-owned banks’ combined equity was VNĐ252.472 trillion (US$10.83 billion), down 0.86 per cent.