FTSE Russell Reforms Vietnam’s VNIBOR Benchmark to Align with Global Standards

HANOI — FTSE Russell has announced a major reform of the Vietnamese Dong (VND) interest rate benchmark, VNIBOR, introducing a trade-based methodology designed to align Vietnam with international standards for nearly risk-free rates (RFRs). The changes will take effect on 3 November.

VNIBOR, Vietnam’s established interbank interest rate with a history of more than 25 years, will now more closely follow the Financial Stability Board’s (FSB) recommendations for benchmark reform. The updated methodology will also be administered in line with UK and EU benchmark regulation (BMR).

Jacob Rank-Broadley, Head of LIBOR Transition at FTSE Russell, said: “These methodology changes have been developed in conjunction with the market to ensure Vietnam has an accurate and robust interbank interest rate which will support development of Vietnam’s financial markets and economy.”

Following industry consultation and the successful publication of a prototype, FTSE Russell will calculate overnight, spot-week, two-week, one-month, and three-month VNIBOR tenors using VND deposit transactions. At the same time, new overnight compounded average rates and an overnight index will be launched, supporting VNIBOR’s use as a risk-free rate.

The move brings Vietnam in line with other leading markets that have shifted to RFRs, such as the United States’ SOFR and Singapore’s SORA.

FTSE Russell

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