The reallocation toward bank savings has drained substantial trading volume from financial markets, with Ho Chi Minh City Stock Exchange turnover tumbling to $568 million in October. Cash parked in domestic brokerage accounts plummeted 49% year-over-year to 64.9 trillion dong at the close of the third quarter. Meanwhile, household bank deposits climbed to a record 11.43 quadrillion dong by late August, and foreign investors have logged a net $4.6 billion in equity sales this year.
Key points
Household bank deposits reached an all-time record of 11.43 quadrillion dong by late Augu…: Household bank deposits reached an all-time record of 11.43 quadrillion dong by late August as savers pursued near 10% interest rates.
Smaller and mid-sized lenders continue providing high negotiated deposit yields despite t…: Smaller and mid-sized lenders continue providing high negotiated deposit yields despite the central bank ordering rate cuts in late October.
Equity market declines persist despite broader economic growth hitting post-pandemic high…: Equity market declines persist despite broader economic growth hitting post-pandemic highs and FTSE Russell granting an emerging-market upgrade.
Sources checked by our analysis pipeline: 1
(Bloomberg) -- Vietnam’s retail investors are dumping equities and buying high-yielding notes from banks to capture interest rates nearing 10%, as locals and foreigners fall out of favor with the poor-performing stock market.
Banks lifted deposit rates in recent months to compete for funding, sucking in a swathe of the country’s 14 million retail investors to a financial product long considered out of fashion. The move came as the roughly $392 billion equity market dropped about 3% in 2026, on course for its first annual loss in four years.
Vietnam’s economy is growing at the fastest pace since the global pandemic as an expansion in credit buffers profitability at the largest banks. Still, persistent selling of equities by oversees money managers and local individual investors preferring the safety of high returning bank notes has left the benchmark stock index about 24% below its price-earnings multiple of the past five years.
For now, that’s not cheap enough to tempt back investors who’ve been stung by the falls, like Trung Nguyen, a 47-year-old Hanoi resident.
Financial analysts at the firm anticipate positive performance across developing economies over the coming years. Their research points toward measurable advancement for these regional assets looking ahead to 2027. This evaluation indicates expectations of sustained upward momentum across emerging market sectors by that period.
Developing-nation stocks and foreign exchange faced headwinds as persistent expectations of elevated U.S. borrowing costs bolstered the dollar against most local currencies. Turmoil in the technology sector worsened following Jensen Huang's sudden removal from Nvidia, though strong hardware demand in Asia helped regional equity benchmarks secure solid weekly gains. Meanwhile, resilient global crude prices continued to place outsized pressure on energy-importing economies.
Market participants observed a downward drift across domestic equities as the trading session concluded. Broader regional pressures kept overall investor sentiment subdued, although key benchmark tracking managed to hold its prior ground. This mixed finish highlights ongoing hesitation among traders navigating the current local economic environment.