Recent data from the State Bank of Vietnam (SBV) reveals a record-breaking surge in household savings. As of the end of March 2025, Vietnamese citizens have deposited more than VND 7.46 million billion into the banking system — the highest figure ever recorded. Despite relatively modest interest rates, deposits have continued to rise sharply, reflecting the growing trust and reliance on the national banking infrastructure.

1. The Numbers Behind the Surge

According to the SBV, total deposits across licensed credit institutions reached nearly VND 15 million billion by the end of March, marking a 1.83% increase from February. Of this:

• Individual savings reached VND 7.46 million billion, up 5.73% since the beginning of the year.

• In March alone, households deposited an additional VND 103.8 trillion.

In contrast, corporate deposits declined to VND 7.52 million billion, representing a 1.92% decrease from the end of 2024. However, there was a monthly recovery of VND 158 trillion compared to February.

2. Deposit Trends Reflect Shifting Financial Behavior

The increase in household deposits, despite the continued downward trend in interest rates, underscores a broader shift in financial behavior. While lower rates may typically discourage savings, Vietnamese households continue to prioritize deposit-based security. This may reflect caution amid macroeconomic uncertainties or limited access to alternative investment channels.

Meanwhile, the decline in business deposits suggests more aggressive liquidity deployment into operations, expansion, or short-term investments.

3. M2 Growth and Liquidity in the Economy

The broad money supply (M2) — which includes cash and deposits — expanded to VND 18.45 million billion, representing a nearly 3% year-to-date increase. This growth reflects both rising deposits and a modest rebound in credit activity.

As of March 25, total credit outstanding rose 2.49%, while total deposits increased by only 1.36%, pointing to stronger lending momentum compared to deposit growth.

4. Sector-Specific Credit Developments

Credit growth varied significantly by economic sector:

• Commerce, transport & telecom: VND 4.57 million billion (+3.87%)
  - Of which, commerce alone: VND 4.16 million billion (+3.50%)
  - Transport & telecom: VND 411.2 trillion (+7.76%)

• Industry & construction: VND 3.98 million billion (+2.89%)
  - Industry: VND 2.75 million billion (+3.00%)
  - Construction: VND 1.22 million billion (+2.66%)

• Agriculture, forestry, and fishery: VND 1.03 million billion (+1.46%)

These figures suggest a robust recovery in key infrastructure and trade-related industries, further fueling credit demand.

5. Deposit Interest Rate Landscape

Interest rates across terms remain relatively low but are beginning to stabilize. As of the end of March:

• Demand deposits (<1 month): 0.1–0.2%/year

• 1–6 months: 3.1–4.0%/year

• 6–12 months: 4.5–5.4%/year

• 12–24 months: 4.8–6.0%/year

• Over 24 months: 6.9–7.1%/year
  

Despite subdued rates, long-term deposit products still offer attractive returns, supporting continued inflows from household savers.

6. Forecast: Deposit Rates May Rise as Credit Accelerates

According to MBS Securities, deposit rates are expected to gradually increase in the latter half of 2025. With projected credit growth in the range of 17–18%, driven by expanded industrial activity, improved consumption, and public investment disbursement, banks may face liquidity pressures that compel them to offer more competitive deposit rates.

MBS forecasts 12-month deposit rates at major banks will stabilize around 5.5–6.0% in the coming months.

A Financial Landscape in Transition

Vietnamese households have reached a historic milestone, placing their trust — and their capital — in the domestic banking system to an unprecedented extent. With over VND 7.46 million billion in total savings and credit growth outpacing deposits, Vietnam's financial system is entering a dynamic new phase.

Whether driven by safety, strategy, or lack of alternatives, the record-high savings trend demonstrates that, in uncertain times, banks remain the cornerstone of personal financial planning.

As credit expansion continues and interest rates begin to firm up, both savers and borrowers will need to watch closely — and act wisely.