The State Treasury deposited more than VNĐ400 trillion (US$15.2 billion) at State-owned commercial banks by the end of last year, underscoring the scale of public funds flowing through the banking system and their role in shoring up liquidity, according to banks’ audited financial statements.
Consolidated fourth-quarter 2025 statements from Vietcombank, VietinBank and BIDV show the Treasury’s total deposit balance at the three lenders rose by nearly 11 per cent compared with the end of 2024. The sum represents a substantial and comparatively low-cost source of funding for the State-owned banking group.
State Treasury deposits at banks are often seasonal, heavily dependent on the disbursement of public investment funds.
At VietinBank, the Treasury held nearly VNĐ134.63 trillion in non-term deposits at the end of the fourth quarter, down about 7 per cent from year-end 2024. Despite the decline, it remained one of the bank’s largest institutional funding sources.
BIDV reported Treasury deposits of VNĐ135.86 trillion, including more than VNĐ1.24 trillion in non-term funds. That compares with VNĐ145.26 trillion at the end of 2024, a fall of roughly 6.5 per cent.
Vietcombank held the largest balance. As of the end of the fourth quarter of 2025, Treasury deposits there exceeded VNĐ136 trillion, about 1.8 times higher than at the beginning of the year. However, compared with the end of the third quarter of 2025, the balance fell by around VNĐ21.25 trillion, reflecting cyclical disbursement patterns.
In practice, Treasury deposits tend to be seasonal and closely tied to the pace of public investment spending. When disbursement slows, funds accumulate in the banking system. When spending accelerates, balances can be drawn down quickly.
For State-owned lenders, Treasury deposits provide an important liquidity buffer, easing reliance on funding from individuals and businesses during tighter monetary conditions. They are also relatively inexpensive compared with many other funding channels.
Data from the State Bank of Vietnam show that, as of December 2025, average Vietnamese đồng interest rates at domestic commercial banks were 0.1-0.2 per cent per year for non-term deposits and those with maturities of less than one month. Rates for terms from one month to under six months ranged from 3.8-4.5 per cent per year. Deposits with maturities of six to 12 months carried rates of 4.7-5.9 per cent, those from over 12 months to 24 months were 5-6.4 per cent, and terms of more than 24 months stood at about 6.8 per cent per year.
Such sizeable balances can bolster key liquidity indicators, including liquidity reserve ratios and short-term solvency metrics. With a stable inflow of public funds, banks face less pressure to raise deposit rates to compete for retail money, helping keep funding costs in check and creating room to lower lending rates to support businesses.
However, Treasury funds are inherently linked to the timing of State budget revenues and expenditures, as well as public investment plans. Balances can therefore fluctuate sharply over short periods. Banks cannot treat this as a permanently stable, long-term funding source and must continue to manage liquidity prudently, align maturities carefully and deploy capital conservatively.
