Short-term borrowing costs in Vietnam are punitively high, with the per-annum interest rate payable on a three-month dong loan reaching 8.5%. Small wonder that demand among Vietnam corporates for US dollar funding is on the rise. Short-term loans in US dollars can be 3–4% lower than those in the local currency.
The difficulty is that local restrictions make it difficult for companies in Vietnam to access offshore funding. The Bank for Investment and Development of Vietnam (BIDV) has a solution: