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Vietnamese consumer bank deposits continue to climb

The total volume of cash kept in banks by individual account holders (as opposed to businesses) reached VND 6.84 quadrillion or US$277.3 billion at the end of July, according to State Bank of Vietnam data. This represents an increase of 4.68 percent since the end of 2023 and is despite interest rates being relatively low.

Of note, over the last two years in the wake of a broader economic downturn brought on by higher interest rates in key export markets and the near-collapse of Vietnam’s real estate market, everyday Vietnamese have turned to saving rather than spending their excess income. This is problematic in that local consumption has been an important growth driver over the last decade or so. Retail sales, month on month, however,  have been more or less stagnant since the beginning of the year. This latest data from the SBV suggests this could last a while longer.

See also: Banking in Vietnam: Industry Overview

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