As of November 2024, total deposits from individual customers in the banking system had surpassed 7 quadrillion VND — an all-time high. This figure is an increase of 467.549 trillion VND compared to the end of 2023, marking a 7.16% growth.
Vast resources among the public
According to the General Statistics Office, total capital mobilised by credit institutions had grown by 9.06% to nearly 14.7 quadrillion VND as of December 25, 2024. Meanwhile, credit disbursement exceeded 15.4 quadrillion VND, closing the year at 15.6 quadrillion VND. While the State Bank of Vietnam (SBV) has not officially released year-end mobilisation figures, it is likely that mobilised capital still lags behind outstanding credit.
In addition to bank deposits, Vietnamese citizens also hold significant financial assets in the form of gold and foreign currencies. According to the World Gold Council, gold held by the public is estimated at 400–500 tonnes, equivalent to tens of billions of US dollars. If even part of this gold were circulated instead of being hoarded, it would provide a significant capital boost for production and business activities. The challenge lies in encouraging people to voluntarily participate in the financial system while ensuring trust and security amid market fluctuations.
One solution proposed by many economists is for the SBV to issue gold certificates to replace physical gold holdings. These certificates would carry interest, offer complete security, and give people greater peace of mind when converting their assets. This model has been successfully implemented in several countries, with the provision that economic conditions are stable and the public is well-informed about the benefits of converting “real gold” into “paper gold.”
The US dollar remains the most commonly held and preferred foreign currency among Vietnamese. It is difficult to calculate the exact amount of USD held by people. In 2024 alone, remittances to Vietnam were estimated at 16 billion USD. From 1993 to 2022, total remittances reached 190 billion USD, nearly matching the amount of disbursed FDI. Despite the SBV’s long-standing zero-interest policy on USD deposits, most of this money remains outside the banking system.
Experts agree that the key to mobilising household gold for economic development is to clearly demonstrate the benefits of investment over hoarding. The tendency to store gold and foreign currencies remains common, especially among the elderly, who often view gold as a safeguard against health and financial risks.
While the trend of “goldisation” and “dollarisation” has subsided, this does not mean that people are ready to convert all their gold and foreign currencies into Vietnamese dong (VND). To truly redirect this capital into the economy, mobilisation policies must be both attractive and trustworthy, offering citizens clear advantages for circulating their assets rather than continuing to hoard them.
 |
Currently, about 60-70% of household assets are in real estate, making it difficult for cash to flow into production. (Photo: MINH LE) |
Where should the appeal come from?
Attracting idle household capital into production and business is not just an economic issue, it is a sustainable development strategy. Rather than using the phrase of “mobilising public capital,” which may cause misunderstanding, the goal should be to create transparent, safe, and appealing investment channels to encourage voluntary participation.
Trust is the decisive factor. Following financial scandals like the Van Thinh Phat case, public caution has increased. To restore confidence, businesses must be transparent with financial disclosures, regulators must ensure tight oversight, and investor protection mechanisms — such as requiring collateral for bond issuance — must be enforced. With controlled risk, people will be more willing to invest in the economy.
In addition, expanding and diversifying investment channels is a key strategy. Vietnam’s stock market still has ample room for growth, as only about 3–4% of the population currently participates — much lower than in many neighbouring countries. If listing procedures are simplified, tax incentives are offered, and corporate bonds are developed with more attractive interest rates than savings accounts, public capital will be encouraged to flow into investments instead of being kept in cash or gold. Furthermore, community investment funds that allow individuals to contribute small amounts to potential projects also represent an effective approach.
Beyond the financial market, encouraging direct investment in production and business activities also needs to be promoted. Tax incentive policies for small and medium-sized enterprises, support for cooperation between local businesses and residents, or cooperative models can help optimise idle capital among the population. When people clearly see the benefits, they will proactively participate instead of passively hoarding assets.
The banking system also plays an important role in unlocking financial resources. However, with current savings interest rates at only about 5–6% per year — less attractive when compared to inflation — banks need to develop more flexible savings products, combined with investments in businesses, to ensure long-term returns. Additionally, financial technology (fintech) platforms such as MoMo and ZaloPay can promote peer-to-peer (P2P) lending models, directly connecting individuals with capital to businesses in need of loans.
Another issue that needs to be addressed is reducing the allure of real estate and gold. Currently, about 60–70% of household assets are tied up in real estate, making it difficult for capital to flow into production. The government can manage this by increasing transfer taxes and limiting real estate speculation. At the same time, policies to stabilise exchange rates and enhance attractive financial products will help reduce the tendency to hoard gold, redirecting capital into more efficient investment channels.
In addition to the above solutions, improving financial literacy is essential. Training programs, media campaigns on investment, and real-life success models will help people better understand the benefits of channelling money into production and business. Notably, the government could establish credit guarantee funds to protect investors and pilot capital mobilisation models in provinces such as Dong Nai, Binh Duong, and Can The before expanding them nationwide.
Nguyen Van Than, Chairman of the Vietnam Association of Small and Medium Enterprises, remarked that "a distinctive trait of Vietnamese businesses and people is their willingness to give wholehearted support when the country is in need." However, this sentiment should not be exploited mechanically. If Vietnam simultaneously implements solutions to build trust, develop investment channels, control speculative markets, and promote financial education, it can foster a healthy investment environment. Idle capital among the population can be leveraged to maximise benefits for both sides. This will lay a solid foundation to boost production, as well as the private economy in general, providing momentum for double-digit growth in the future.
According to Dr. Nguyen Tri Hieu, a banking and finance expert, the gold reserves held by the population are a major resource that, if not used efficiently, would be a significant waste. Moreover, treating gold as an investment asset carries the risk of “goldisation” of the economy, which undermines the stability of the financial system.
