An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
Total deposits from citizens at banks have reached a new all-time high of VND6.8 quadrillion (US$276.3 billion) as of the end of July, according to the State Bank of Vietnam.
They increased by 4.68% from the end of 2023.
Despite significant and prolonged declines in deposit interest rates, citizens’ deposits have shown steady growth over the past two years. Experts said that this reflects the cautious attitude of the public in response to uncertainties in the economy and other asset classes such as stocks or real estate.
On the contrary, corporate deposits fell by 1.07% compared to the end of last year to VND6.76 quadrillion.
According to industry insiders, this shift may be driven by businesses seeking new investment opportunities with higher returns than the low interest rates offered by banks.
