Which investments to make in 2025?
Financial reports indicate a large amount of cash in the banking system at the end of 2024. Investors in 2025 will have plenty of choices of where to put their money, according to economists and financial analysts.
Financial indicators showed a large volume of cash in the banking system by the end of 2024. Investors looking for options of where to put it in 2025 will have plenty of choices, all with strengths and weaknesses, say economists and financial analysts.
Property
Economist Dr Lê Xuân Nghĩa, said that 2025 is unlikely to be a promising year for the real estate sector. Buyers are holding out for potential price drops, while developers await new laws to ease supply chain challenges.
"Provinces and cities will announce new land prices. I am very concerned that land prices in certain areas might increase significantly. If prices spike drastically, even foreign investors may hesitate to enter the market," Nghĩa said.
On a brighter note, he said that resolving stagnant and abandoned projects could release tens of trillions of VNĐ tied up in land. However, the market in 2025 will largely remain in a 'wait-and-see' phase, with investments likely to be cautious.
Vice Chairman of the Vietnam Real Estate Association (VNREA), Nguyễn Văn Đính, expressed more optimism.
He said 2025 might see better growth compared to 2024, driven by institutional reforms, planning updates and eased corporate bond issues. However, the sharp increase in land prices across several localities presents a notable challenge, inflating housing costs and possibly deterring transactions.
Gold
Gold reached an all-time high in 2024, with global prices rising by 28 per cent. In Việt Nam, SJC gold bars climbed by 14 per cent, while gold rings surged 35 per cent. Some analysts forecast another price increase in 2025, before gold enters a so-called 'hibernation' phase as economic recovery gains momentum.
Head of Research at Capitalight Research, Chantele Schieven, highlighted that gold prices in the first half of 2025 could range between US$2,500 and $2,700 per ounce. However, she predicts a surge past $3,000 per ounce in the second half of the year, spurred by potential disruptions such as central banks increasing their gold purchases or economic instability.
CEO of FIDT, Ngô Thành Huấn, advised limiting gold investments beyond 2025. "Once the economy recovers, gold prices will decline. Although I don’t expect a steep drop, prices might decrease by 5-15 per cent," he noted.
Savings
This remains a popular choice due to its low-risk nature, making it suitable for most investors who prioritise safety.
Forecasts suggest that domestic deposit interest rates may rise slightly in the first quarter of 2025, but the average 12-month term interest rate is unlikely to exceed 7 per cent per year, as global interest rates are on a downward trend. Although potential returns may improve slightly in the first half of the year, savings accounts are still unlikely to generate breakthrough profits and are primarily suitable for low-risk investors.
Economist Lê Xuân Nghĩa said: "Macroeconomic conditions are unlikely to see major events. Real estate and corporate bonds face persistent challenges, while gold will encounter pressures. The stock market offers opportunities, but it’s not suitable for everyone".
Stocks and cryptocurrencies
The year 2025 will be an economic pre-recovery period, making stocks a promising investment channel. Many organisations predict that the Vietnamese stock market could grow by around 14-15 per cent in 2025, but with significant fluctuations.
The stock market’s potential upgrade to an 'emerging market' status, expected by September 2025, could attract significant foreign capital, according to Hoàng Quốc Anh, the Investment Director at GHGInvest.
Cryptocurrency, meanwhile, was 2024’s best-performing investment channel, with Bitcoin surpassing US$100,000 per BTC— a historic milestone. Other major cryptocurrencies like Ethereum and BNB also saw significant growth.
Economist Dr Đinh Trọng Thịnh called for a legal framework for digital assets to protect investors and ensure tax compliance. Forbes predicts that major economies could announce Bitcoin reserve strategies in 2025, further solidifying its position as a global asset.
However, risks abound, including market manipulation and scams. Recent cases like TikToker Phó Đức Nam’s (Mr Pips) fraud scheme involving up VNĐ5,200 billion, highlight the need for caution in cryptocurrency investments. — VNS
