Lack of superior investment channels, money still flows into banks

Bank deposits hit record high

The latest data just released by the State Bank shows that by the end of March 2025, deposits from both individual customers and economic organizations of credit institutions reached nearly 15 million billion VND, up 1.8% compared to the previous month. Of which, deposits from residents reached 7.47 million billion VND, up 5.73% compared to the beginning of the year. Deposits from enterprises reached 7.52 million billion VND, down 1.92% compared to the end of 2024, but up more than 158,000 billion VND compared to the previous month.

According to Dr. Chau Dinh Linh (Banking University of Ho Chi Minh City), deposits are flowing strongly into banks because people are cautious in the context of the economy and other investment channels that have many potential risks and are unpredictable. Although the rate of return is lower than other investment channels, savings deposits are safe and highly liquid.

Similarly, Mr. Nguyen Quang Huy, Executive Director of the Faculty of Finance and Banking (Nguyen Trai University) said that although the interest rate is not attractive compared to many other investment channels, it is suitable for the risk appetite of the majority of people (safety is the number one requirement). "The market has many investment channels, but there is a lack of attractive investment channels in terms of yield, safety and liquidity. Therefore, idle money in the people still flows mainly into the banking system," Mr. Huy commented.

According to the State Bank, by the end of May 2025, credit in the entire economy increased by 6.52%, nearly 3 times higher than the growth rate in the same period last year. Thus, credit in the entire economy has reached a scale of about 16.6 million billion VND, an increase of 1 million billion VND compared to the end of 2024.

The market lacks outstanding investment channels

After a surge in recent months, the real estate market has shown signs of slowing down. According to Dr. Tran Xuan Luong, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute, investors are more cautious due to political fluctuations in the world, as well as changes in domestic institutions. The real estate market in the last 6 months of 2025 is expected to remain stable.

Many economic experts also believe that after a period of hot price growth, the real estate market will slow down, and the demand for real estate "surfing" will decrease. Slowing liquidity will cause the cash flow into this sector to no longer flow as strongly as in the first half of the year.

In the gold market, the price of SJC gold bars increased by 44% in the first 4 months of the year, but has been flat for the past 2 months. In the world , the price of gold skyrocketed from the mark of 2,624 USD/ounce at the beginning of this year to nearly 3,500 USD/ounce at the end of April 2025 and is hovering around the mark of 3,400 USD/ounce.

Although the world gold price is forecast to continue to rise, experts say that the gold price is in a phase where it “can turn around at any time”. Therefore, investors need to be cautious and should only invest in gold if they truly consider it a defensive asset or a long-term investment.

“It is difficult to predict the price of gold in the coming time, but I think that in the context of global instability, institutional and individual investors are increasingly looking to gold to hedge against uncertainties. In Vietnam, the demand for gold investment is still very strong, but investors must be vigilant and always ready for any surprises,” Mr. Shaokai Fan, Director of Asia-Pacific region (excluding China) and Director of Global Central Banks at the World Gold Council recommended.

Regarding the stock investment channel, Mr. Phan Dung Khanh, Investment Consulting Director of Maybank Investment Bank, said that the market still receives more positive news than negative news. Cash flow and liquidity are gradually improving, supporting investor sentiment. However, for the market to grow strongly, fundamental information such as economic growth or market upgrade is still needed...

According to experts, the National Assembly's legalization of digital assets and crypto assets in the Digital Technology Industry Law and the establishment of an International Financial Center in Vietnam will open up a new official investment channel. However, this investment channel requires specialized knowledge and is highly risky, not suitable for the majority of investors.

When all investment channels are unstable, most investors still prioritize capital preservation - the biggest advantage of savings deposits. "This explains why idle money still flows into banks despite the low savings interest rates," said Dr. Nguyen Tri Hieu, an economic expert.

Source: https://baodautu.vn/thieu-kenh-dau-tu-vuot-troi-dong-tien-van-chay-vao-ngan-hang-d306581.html