Margin rates hit multi-year peak in Q1

Through rising funding costs and persistent market swings, Vietnam's largest securities firms have lifted margin lending rates to levels not seen in years, signalling a costlier environment for leveraged investors.

- By Kaitlyn Le

Base margin lending rates at many of Vietnam's largest securities firms moved to a new high in Q1, with clear adjustments announced in February and March.

Previously, margin interest rates in recent years typically ranged around 11-12 per cent per annum, but from the start of this quarter many firms published revised rate schedules, raising rates by 0.5-1 percentage point from previous levels.

VPS Securities formally raised its margin lending rate from 13.8 to 14 per cent per annum in a notice dated mid-February, just ahead of a broader industry repricing in March.

Vietcap Securities introduced its new schedule effective March 1, setting its standard rate for margin lending and advance payments on sold securities at 13 per cent per annum, about a 0.5 percentage point increase. During the same period, HSC and ACBS also updated their margin lending rates to 14 per cent.

These adjustments coincide with a record buildup of margin debt across the industry, which exceeded $16 billion at the end of 2025, a reflection of robust investor demand for leverage alongside rising capital costs. The timing of rate increases overlapped with periods of heightened market volatility linked to geopolitical tensions in the Middle East.