Lacking attractive investment channels, money is 'flooding' into...

In the absence of truly outstanding investment channels, with a stagnant real estate market, unpredictable gold prices, and a lack of momentum in the stock market, people's idle money continues to flow strongly into the banking system. A new record has just been set, confirming that saving money remains the top priority.

Bank deposits set a new record.

According to the latest data from the State Bank of Vietnam, as of the end of March 2025, total deposits at credit institutions reached nearly 15 million billion VND, an increase of 1.8% compared to the previous month.

Of that total, household deposits reached 7.47 million billion VND, a sharp increase of 5.73% in just three months. Notably, although corporate deposits decreased slightly by 1.92% compared to the end of 2024, they still increased by more than 158,000 billion VND compared to the previous month, demonstrating the attractiveness of the banking channel amidst a volatile economy .

According to Dr. Chau Dinh Linh (Ho Chi Minh City University of Banking), in a period where investment channels carry high risks, a defensive mindset is a natural reaction of the people. Although the return on investment is not high, saving money provides security, good liquidity, and especially avoids "shock" fluctuations from the market.

Sharing the same view, Mr. Nguyen Quang Huy, Executive Director of the Finance and Banking Faculty (Nguyen Trai University), stated: “People are increasingly prioritizing low-risk options. Although current investment channels are diverse, none meet all three criteria: yield, safety, and liquidity. In this context, banks remain the safest 'haven' for idle funds.”

Notably, according to data released by the State Bank of Vietnam, by the end of May 2025, credit to the entire economy had increased by 6.52%, nearly three times higher than the same period last year. Total outstanding credit currently stands at approximately 16.6 trillion VND, an increase of 1 trillion VND in just the first five months of the year.

Credit flows have been injected strongly, but a large portion of the money remains "anchored" in banks, indicating that people have not yet found an alternative investment channel that is attractive enough.

The investment market hasn't yet gained enough momentum to rebound.

After a period of rapid growth, real estate, one of the most anticipated investment channels, is showing clear signs of cooling down. Dr. Tran Xuan Luong, Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation, believes that investors are currently cautious due to global geopolitical fluctuations and domestic institutional adjustments. According to him, the market in the second half of 2025 will remain in a "sideways" state, with little chance of a significant breakthrough.

Moreover, the speculative capital flows that once fueled a distorted real estate boom have now cooled down significantly. Short-term investors are withdrawing as market liquidity declines, and many projects no longer generate the same profit expectations as before. The slowdown in real estate price increases also means that this investment channel is no longer a "gold mine" for individual investors.

Meanwhile, the gold market, a traditional investment channel considered a "safe haven," is also entering a period of unpredictable volatility. In Vietnam, the price of SJC gold bars increased by 44% in just the first four months of the year, but has fluctuated for the past two months.

On the global market, gold prices peaked at nearly $3,500 per ounce in April 2025, but since then have been fluctuating around $3,400 per ounce, showing no clear trend.

After a period of rapid growth, real estate, one of the most anticipated investment channels, is showing clear signs of cooling down.

Shaokai Fan, Regional Director for Asia Pacific and Global Central Banking (World Gold Council), warned that while gold remains a strategic defensive asset, the "risk of correction" is always present. "Gold prices could reverse at any time. Investors lacking sufficient knowledge and long-term strategies should carefully consider their options before investing," he said.

Regarding the stock market, despite signs of improvement and a positive investor sentiment, it lacks the momentum to create a breakthrough. According to Mr. Phan Dung Khanh, Director of Investment Consulting at Maybank Investment Bank, for sustainable market growth, fundamental factors such as GDP growth, information on market upgrade, and stable foreign capital inflows are needed. These factors are currently not yet clear or have not arrived at the right time.

From a new investment perspective, some experts are optimistic about the digital asset sector. The National Assembly's consideration of legalizing crypto assets within the Digital Technology Industry Law, and the plan to establish an International Financial Center in Ho Chi Minh City, could open up significant opportunities. However, this is a playing field that demands deep understanding and a high level of risk tolerance, qualities that not all investors possess.

While both traditional and emerging investment channels are showing signs of instability or lack of attractiveness, bank savings deposits are emerging as a stable and safe option.

Dr. Nguyen Tri Hieu, a financial expert, commented: "It's not surprising that money is still 'sitting idle' in banks. People are prioritizing capital preservation over taking risks to make profits in the current volatile market."

People's choices reveal a clear paradox: despite low deposit interest rates, it remains the most popular "investment channel."

Given the lack of real upward momentum in the financial and investment markets, the "wait-and-see" approach through savings deposits will likely continue for some time to come.

Source: https://baodaknong.vn/thieu-kenh-dau-tu-hap-dan-dong-tien-do-don-vao-ngan-hang-255979.html