Vietnamese Corporations Shift Cash Reserves Amid Rising Interest Rates, Earning Billions Daily

Vietnamese corporations are adjusting their cash management strategies in the first quarter of 2026, prompted by a gradual increase in deposit interest rates. Many companies are reducing their holdings of cash and cash equivalents, reallocating funds towards short-term investments such as lending to business partners or placing money in time deposits ranging from three to twelve months. Vingroup, the conglomerate led by billionaire Pham Nhat Vuong, saw its cash and cash equivalents drop significantly from over 36.78 trillion VND at the start of the quarter to 6.75 trillion VND by March 31. Concurrently, its short-term investments, including loans to partners and time deposits, increased. Vinhomes, a Vingroup subsidiary, also reported a substantial decrease in cash and cash equivalents, from nearly 30.34 trillion VND to 5.66 trillion VND. Its short-term investments grew, with loans to partners rising from 1.13 trillion VND to 4.50 trillion VND. Airline Vietjet experienced a similar trend, reducing its non-interest-bearing cash holdings from 10.89 trillion VND to 6.82 trillion VND. The company significantly boosted its short-term investments, particularly loans to partners, which more than doubled to 3.72 trillion VND. Masan Group also shifted its strategy, decreasing short-term deposits while increasing longer-term time deposits. In contrast, Hoa Phat saw an increase in both cash equivalents and short-term investments. This strategic reallocation of funds has yielded substantial interest income for these corporations. Vingroup reported receiving over 2.20 trillion VND in interest, dividends, and distributed profits in the first three months of 2026, a 445% increase compared to the same period in 2025. This translates to an average daily income of approximately 24.5 billion VND. Vinhomes earned nearly 1.35 trillion VND from similar sources, a 126% year-on-year increase, averaging about 15 billion VND daily. Vietjet's income from these sources surged by 625% to over 184 billion VND in the first quarter.