Newly released data from the State Bank shows that cash flows from residents continue to flow into credit institutions. Specifically, as of the end of April 2023, the amount of deposits from residents at credit institutions reached VND 6,332 trillion, equivalent to an increase of 7.96% compared to the end of 2022 (an increase of more than VND 467,000 billion).

April also marked the fourth consecutive month of record growth in bank deposits. Compared to March, in April, bank deposits increased by VND52,000 billion.

Cash flow from residents continues to flow into credit institutions. Photo: vtv.vn

Notably, the increase in people's deposits at banks occurred in the context of the State Bank continuously lowering operating interest rates, helping commercial banks reduce deposit interest rates.

Recently, at the regular Government Press Conference in June 2023, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that since the beginning of 2023, the State Bank has reduced operating interest rates by 0.5 - 2% 4 times. By the end of June, the average deposit interest rate decreased by 0.7 - 0.8%, and the loan interest rate decreased by 1 - 1.2%. State-owned joint stock commercial banks took the lead in reducing interest rates, many banks announced very deep reductions.

On the contrary, deposits of economic organizations at banks marked a sharp downward trend. In the first two months of the year, deposits of this group decreased by 338,000 billion VND, but by March they increased again to 48,000 billion VND but could not maintain this growth momentum.

Specifically, deposits of economic organizations in April decreased by VND 8,833 billion, down to VND 5,654 trillion, down 5.02% compared to the end of 2022. Difficulties in production and business in recent times are considered the main cause of this downward trend. Enterprises have to withdraw deposits from banks to deal with the difficulties.

According to data from the General Statistics Office, on average, in the first 6 months of 2023, 16,700 enterprises closed each month. Specifically, in the first 6 months of 2023, the number of enterprises temporarily suspending business was 60,200 (up 18.2% over the same period last year); 31,000 enterprises stopped operating pending dissolution procedures (up 28.9%); 8,800 enterprises completed dissolution procedures (up 2.8%).

According to the Department of Business Registration, business capital is considered one of the biggest difficulties that businesses are facing.

Statistics show that the registered capital of newly established enterprises in the first 6 months of 2023 decreased by 19.8% compared to the same period in 2022; also lower than the average level in the first 6 months of the year 2018-2022. In addition, the average registered capital per enterprise in the first 6 months of 2023 reached only 9.3 billion VND - the lowest level in the first 6 months of the year since 2017.

According to VTV