Baoviet Holdings' headquarters in Hà Nội. By the end of June 2026, the insurance company’s cash and deposits totaled over VNĐ170 trillion (US$6.43 billion). — VNS Photo

HÀ NỘI — While rising interest rates have put pressure on cash flow and increased borrowing costs for many businesses, companies with substantial cash reserves and bank deposits stand to earn more interest income.

Large cash holdings provide a buffer against difficult market conditions while allowing businesses to benefit from higher deposit rates.

By the end of September, competition for deposits had pushed the highest rates at some banks to 9–10 per cent per annum. Meanwhile, rates on some loans could reach 16–18 per cent per annum.

Baoviet Holdings is one example of a company that could benefit. At the end of June 2026, the insurance group held more than VNĐ170 trillion (US$6.43 billion) in cash and bank deposits.

With deposits of this scale, even a one-percentage-point change in interest rates could have a substantial impact on its interest income.

Vingroup also held nearly VNĐ85 trillion in cash and deposits, while Vinhomes had more than VNĐ55.4 trillion.

PV GAS reported approximately VNĐ45.45 trillion in cash and bank deposits at the end of the second quarter.

However, holding large amounts of cash does not automatically guarantee a financial advantage.

Some major conglomerates have recorded surges in cash reserves alongside significant increases in outstanding debt. The critical factors are the interplay between cash holdings, operating cash flow, debt levels, repayment schedules, and profitability.

In a high-interest-rate environment, companies with substantial cash and deposits can earn extra income from their holdings, depending on the volume, term, and applicable interest rates.

Market divergence is thus reflected not only in growth expectations but also in the liquidity and financial structure of individual enterprises.

Companies with large cash reserves enjoy greater financial flexibility, whereas those with high capital requirements must focus more closely on fundraising capabilities and the cost of capital.

As interest rates remain elevated, disparities in the cost of capital and income from deposits will likely continue to drive performance differences among companies with varying financial structures.

With the cash advantage, shares of the enterprises have been attractive, with Baoviet Holdings (HOSE : BVH) hitting the cap of VNĐ73,600 per share. 

In contrast, cash-strapped enterprises with high capital needs face an increasingly costly financial landscape. The high rate environment has placed additional pressure on the enterprises as they need to secure new loans, refinance existing debt, or raise capital to meet financial obligations.

As the case of Novaland, according to the company’s semi-annual financial report, its total outstanding loan and bond principal stood at approximately VNĐ72.9 trillion as of the end of June, with bank debts accounting for over VNĐ31.3 trillion.

Amid cash flow pressures and financial obligations, Novaland has continued to restructure its debt, manage assets, and raise additional capital. The company plans to offer nearly 800.7 million shares to existing shareholders at a price of VNĐ10,000 per share, aiming to raise approximately VNĐ8 trillion in October. — BIZHUB/VNS