Vietnam bank deposits exceed 11 quadrillion VND amid production funding bottleneck

According to the State Bank of Vietnam, individual customer deposits at credit institutions exceeded 11 quadrillion VND by the end of June.

Associate Professor Dr. Dang Ngoc Duc, Director of the Institute of Financial Technology at Dai Nam University, notes an economic paradox: while the “valve” attracting money into banks is open, the “valve” directing funds from banks into the production sector is clogged.

Despite increasing deposits and credit growth, capital is not effectively reaching businesses. Dr. Duc suggests that as other investment channels become less attractive due to economic difficulties, money is flowing back into the banking system as a safer option. He further explains that even when banks attempt to lend, difficulties in the material production and consumer goods sectors make it challenging for capital to enter the production cycle, often because businesses struggle to meet necessary lending conditions.