As of September 30, outstanding credit across the banking system had increased 11.6% while deposits grew 9.8%, widening the gap that puts pressure on interest rates. The faster credit growth means banks need more funding, which can push rates higher.

Analysts at SSI Research warned that rising bank funding costs are gradually affecting lending rates, while inflationary pressures limit the scope for broad‑based rate cuts. This makes it harder for the central bank to lower rates across the board.

Truong Hien Phuong, senior director at KIS Vietnam Securities, said reducing pressure on interest rates requires an additional source of medium‑ and long‑term capital large enough to share the burden with the banking system. A deeper capital market could provide that extra source.

An SSI Research representative added that when the capital market becomes sufficiently deep, some long‑term investment needs can be financed through equity and bonds, easing pressure on the banking system and creating more room to stabilize interest rates. In short, a stronger stock market can help keep borrowing costs more stable.