Money Is Not Scarce – So Why Are Businesses Still “Hungry” for Capital?

Have you ever wondered: Why is public savings at an all-time high, deposit interest rates remain elevated, but businesses—the “backbone” of the economy—are constantly struggling to access capital?

Have you ever wondered why public savings are at an all-time high and deposit interest rates remain elevated, yet enterprises still find it incredibly difficult to access capital? It sounds contradictory, but the reality is that there is no shortage of money in the economy; it is simply “in the wrong place” and tied up in the “wrong terms.” An estimated 12-14 quadrillion VND in deposits remains trapped, struggling to find its way out of the maze of “safety” and “speculation.”

1. The Operational Principle: Money Always Seeks the “Fattest” Ground

To understand this paradox, we must look at how cash flow operates. Money inherently seeks the place where it can grow the fastest and safest. In a context where production faces hurdles, social cash flow tends to withdraw from value-creating activities to seek “safe havens” instead of helping firms access capital for expansion.

2. When Production is Outshined by Speculation

If you were an investor, which option would you choose?

• Option A: Open a factory, hire workers (High risk, slow ROI, intense competitive pressure).

• Option B: Buy gold, hoard foreign currency, or wait to “bottom fish” real estate (Quick profits, strong herd mentality).

Currently, a large portion of cash flow is choosing Option B. When money does not flow into factories, it creates neither products nor jobs; it only inflates asset prices.

3. The Paradox: High Interest Rates Amidst “Excess Money”

This is the crux of the matter: Why do banks maintain high deposit interest rates despite having a surplus of cash?

• Retaining Cash Flow: Banks must compete with interest rates to prevent money from leaking into Gold or USD.

• Maturity Mismatch: The public mainly deposits short-term (waiting for speculative opportunities), while businesses need long-term funds to properly access capital.

• The Consequence: Banks are “drowning” in short-term deposits but lack stable funds for long-term lending. According to global financial studies on liquidity management by the World Bank, a maturity mismatch severely restricts the credit flow, driving up the cost of funds and causing a severe credit crunch.

4. The Result: “Fake Wealth” on a Foundation of “Real Poverty”

When money is funneled into speculative assets instead of production:

• Rising Asset Prices: You feel wealthier as your land or gold appreciates in value.

• The Reality: The economy does not get stronger. There are no new factories, no new jobs for workers.

This is how a “bubble economy” is formed: prices are blown up while the internal strength remains hollow.

5. Why Choose “Saving” Over “Investing”?

In an unstable market, choosing to save or buy gold is a rational psychological response. However, when everyone chooses to “play defense,” the economic blood stops circulating, weakening the economic body. Even with surplus liquidity, banks remain extremely cautious (fearing bad debt), creating a stalemate: Banks have the money, but businesses cannot access capital.

6. The Solution: Not “More Pumping,” but “Redirecting”

The real solution lies not in printing more money, but in redirection:

• Create a transparent environment to bring confidence back to the manufacturing sector.

• Effectively lower capital costs so businesses dare to borrow and execute.

• Control speculative channels so cash flow doesn’t “die” in idle land or gold, allowing productive sectors to easily access capital.

💡 Advice for Individuals

While cash flow is “going the wrong way,” you should:

1. Risk Management: Prioritize liquidity.

2. Avoid the Herd: Be cautious with assets that have been over-inflated by sentiment.

3. Focus on Real Value: Only invest when you truly understand the value that capital is creating.

4. Optimize Workspaces: If you are running a remote business or working from home during this economic transition, investing in health is your best asset. Consider setting up an efficient environment with the best standing desks of 2026 to maintain peak personal productivity.

Conclusion

The economy doesn’t lack money; money simply hasn’t found the path to where it is needed most. When money flows into production, society grows sustainably wealthy. When it flows into speculation, only “virtual numbers” increase.

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In the next article, I will analyze further: Why high deposit interest rates are a “double-edged sword” for economic recovery in 2026. Stay tuned!