We observe a non-sustainable interest rate regime on risk pricing. As the Fed rate cycle inches upward and Vietnamese rates stay on hold in 2017, we expect to see a repricing of sovereign risk and interbank spreads. We are counter consensus and believe that State Bank of Vietnam (SBV) is likely to start raising rates towards Q4 2017-Q1 2018. The sovereign macroeconomic situation allows SBV the policy room to delay raising rates until H2 2018 (with three rate rises factored in for the Fed Funds R