Corporate cash hoarding: companies park large cash balances in banks

In the context of a fluctuating financial market and a rising interest-rate environment, a notable trend on the stock market is that many large enterprises are parking cash in banks to optimize returns, generating a steady cash flow worth thousands of trillions of dong each year. Based on post-audit financial statements, numerous firms are sitting on a mountain of cash, with cash and cash equivalents numbering in the tens or even hundreds of trillions of dong. Instead of boosting production investment amid volatility, many companies are opting for a safer approach by placing funds in banks, taking advantage of attractive interest rates to create a stable cash flow. One typical example is Bao Viet Group. According to its 2025 financial statements, the total value of investments held to maturity by the group reached 259,477 trillion dong, up sharply from more than 225,400 trillion dong in the prior year. Notably, bank deposits form a large share of the asset structure. Bao Viet's bank deposits rose sharply in 2025. Short-term deposits under one year reached nearly 120,000 billion dong, up from around 96,700 billion at end-2024. In addition, the company maintained nearly 27,000 billion dong in long-term deposits. Therefore, Bao Viet's total bank deposits stood at around 146,500 billion dong, accounting for more than half of total assets. These funds are largely deposited in large commercial banks, with interest rates at times reaching 9% per year. This allows financial activities to remain a pillar of profit for the company. In 2025 Bao Viet reported nearly 14,040 billion dong in financial revenue, of which interest income from deposits contributed 7,260 billion dong. Bao Viet is not alone; many other large enterprises are employing similar strategies. In the telecom-technology sector, Viettel Global reported more than 45,000 billion dong in cash, with term deposits accounting for more than 30,660 billion dong. This provides a stable financial income stream that helps improve profits in a highly competitive environment. In the energy group, Lọc hóa dầu Bình Sơn and PV GAS held 43,760 billion dong and nearly 40,000 billion dong in cash, respectively. Notably, term deposits accounted for about 82% of total cash, indicating a trend toward safer investment channels with stable returns. Additionally, many other leading enterprises such as FPT, Thegioididong, Petrolimex, Hòa Phát, and Vinamilk also maintain cash on hand amounts in the tens of thousands of billions, most of which are allocated to bank deposits to optimize capital efficiency. This trend has been driven by the late-2025 and early-2026 shift in interest-rate levels, with many banks raising mid- to long-term deposit rates from commonly 5-6% per year to 7-8% per year. For large cash holdings, rates can exceed 9% per year, creating strong incentives for corporate funds. Depositing money in banks not only helps preserve capital but also generates significant financial income with relatively low risk compared with other investment channels. Especially for enterprises with large cash reserves, simply exploiting high rates can bring in thousands of billions of dong in profit each year. Read more