Despite earning high incomes and having accumulated assets worth billions of dong, many people in major cities like Hanoi are increasingly anxious about being “impoverished” as inflation rises, while gold and property prices soar. At the same time, fears of job losses and income reductions loom large.

Many are urgently seeking safe investment channels to preserve their wealth and build for the future. But in today’s volatile global economy, with uncertain growth and unpredictable markets, where exactly is the smart money going?

Racing to find an investment solution

After delaying for a month, Dinh Dong’s family in Nam Tu Liem, Hanoi, now feels like they’re sitting on a ticking bomb, holding VND 2 billion (USD 80,000) in cash. Gold prices have surged past VND 100 million (USD 4,000) per tael and show no sign of cooling. Meanwhile, real estate markets in some provinces are heating up, fueled by news of administrative mergers. The rising cost of consumer goods only adds to the pressure.

“It’s already sounding exhausting! Land prices are rising too fast, and gold is expensive. Salaries can’t keep up with this storm of inflation,” Dong lamented.

His family recently missed a chance to buy land in Hanoi’s outskirts, a plan they had hoped would protect their assets and secure the future. Dong is now considering taking out a loan to invest, given the current low interest rates and the growing risk of currency devaluation amid global instability.

Dong’s case is far from unique. Many urban dwellers face similar challenges.

Vietnam’s middle class, especially in major cities like Hanoi and Ho Chi Minh City, is grappling with stagnant incomes while the prices of major assets like real estate and gold skyrocket.

With monthly earnings ranging from VND 30 to 75 million (USD 1,200–3,000), this demographic was once considered financially stable, capable of building wealth worth billions of dong. Those who had previously invested in gold, real estate, or other appreciating assets now enjoy sizable portfolios.

Yet not everyone managed to seize those opportunities. Some are hesitant to take on loans amid unstable incomes. The sharp rise in property and gold prices is placing immense pressure on the middle class, making it harder than ever to maintain their economic standing.

Nguyen Van Hung in Hanoi earns a stable income of around VND 45 million (USD 1,800) per month and has saved nearly VND 3 billion (USD 120,000). He’s considering buying an apartment in Long Bien District to rent out.

But he’s conflicted - investing such a large sum, plus taking on debt, seems risky when rental yields haven’t caught up. Asking for high rent could make it hard to find tenants. And parking the money in a bank would only generate modest returns that may erode over time.

Moreover, the average price of a mid-range apartment in Hanoi has now reached around VND 4 billion (USD 160,000), and even more in prime locations.

Similarly, Tran Thi Mai, 42, from Bac Giang, is struggling to find a suitable investment channel. “I’ve saved over VND 2 billion (USD 80,000) after years of hard work, but with gold reaching VND 100 million (USD 4,000) per tael, I’m afraid there’s not much upside left. Gold doesn’t yield income. Real estate is out of reach. And bank interest is negligible. I’m really worried that if I can’t make my money grow, my family will struggle more as my children get older,” she said.

The middle class under pressure

The root of this anxiety lies in the widening gap between income growth and living expenses. Real estate prices have surged by tens of percent annually, in some cases doubling in just a few years - far outpacing middle-class income growth, which typically ranges from 5–10% per year. Gold prices have also climbed rapidly, while interest rates remain low and inflation runs high.

Additionally, global shifts - particularly in artificial intelligence (AI) and automation - are transforming labor markets and investment trends. As traditional jobs fade, the middle class must rethink their investment and savings strategies to adapt.

Although gold and real estate remain favored investment options, they’re no longer as attractive as before.

Real estate, while still expected to appreciate in the long term, may no longer be ideal for short-term speculation. Sky-high prices, low liquidity, and the threat of new tax policies add to the risks of flipping properties for profit.

However, some analysts believe that real estate in suburban areas of major cities or in smaller provinces, where prices are still low and infrastructure is developing, could be a promising bet for those with a 5–10 year outlook.

As for gold, it’s a traditional safe haven but has lost some appeal after its sharp rise through 2024 and early 2025. After hitting VND 98–100 million (USD 3,900–4,000) per tael in early 2025, many forecasts expect it to stabilize or even dip if geopolitical tensions ease.

Investing in gold may not yield significant profits. It is better seen as a defensive asset - worth holding in small portions of one’s portfolio.

Vietnam’s stock market, projected to grow 14–15% in 2025, is emerging as a potential avenue for middle-class investors. Brokerage firms point to strong prospects in technology, banking, retail, and industrial real estate sectors.

However, stock investing demands knowledge, risk tolerance, and close monitoring, making it more suitable for those willing to learn and actively manage their finances.

Finally, traditional bank savings remain the safest option, but returns are modest. With interest rates at just 3–6% annually, savings accounts are best suited for short-term capital preservation.

A widely recommended principle is portfolio diversification. Avoid putting all capital into a single channel. Investing in oneself - by acquiring new skills in tech and finance - is key to adapting to modern work trends and boosting active income. It's also wise to resist the “get rich quick” mindset in today’s volatile markets.

Long-term investments in promising sectors such as high-tech stocks or suburban real estate may be worthwhile - but only for those with patience and a clear vision.

Manh Ha