The operations of the securities investment fund system are not commensurate with its development potential.

On the morning of March 28, the Ministry of Finance held the Conference "Investment Funds and Foreign Investment in Vietnam's New Development Era" in Ho Chi Minh City.

Mr. Nguyen Van Thang, Minister of Finance, said that in 2024, the total capital mobilized by the capital market will reach nearly VND 930,000 billion, 1.3 times higher than in 2023, equivalent to 25% of total social investment capital.

The stock market capitalization reached 62.5% of GDP, the outstanding debt of the bond market reached 31.5% of GDP; foreign investors opened nearly 48,000 investment accounts with a total transaction value of nearly 1.1 million billion VND. Total realized foreign direct investment in 2024 reached 25.4 billion USD, an increase of 9.4% over the previous year, reaching the highest level ever.

These results have contributed positively to GDP growth of 7.09%, bringing the size of Vietnam's economy to 476.3 billion USD, ranking 33rd in the world.

Hoạt động của hệ thống quỹ đầu tư chứng khoán chưa tương xứng với tiềm năng phát triển- Ảnh 1. — Mr. Nguyen Van Thang, Minister of Finance, speaking at the conference. Photo: Hoang Trieu

Despite achieving very positive results in 2024, Minister Nguyen Van Thang also pointed out that the market still has many difficulties and challenges ahead.

The number of investors has been increasing continuously, but foreign investors' trading accounts only account for 0.5%. The operation of the securities investment fund system is not commensurate with its development potential.

Regarding foreign direct investment (FDI), investors and international organizations recognize that there are still some problems in the implementation process regarding land, construction, tax, customs, administrative procedures and foreign exchange...

"To achieve the economic growth target of 8% or more in 2025, creating the premise for double-digit development, the Ministry of Finance focuses on mobilizing all domestic and foreign resources, including investment capital through investment funds and foreign direct investment capital," said Mr. Thang.

Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, informed that the country currently has 43 fund management companies with 123 securities investment funds, with total assets under management reaching more than 750,000 billion VND, more than 7 times higher than in 2014.

Over the past decade, the fund industry has maintained a strong growth rate, averaging over 20% per year. In particular, the emergence of open-end funds, ETFs and real estate funds has contributed to diversifying investment options, with open-end funds and ETFs accounting for 86% of total net asset value.

Hoạt động của hệ thống quỹ đầu tư chứng khoán chưa tương xứng với tiềm năng phát triển- Ảnh 2. — Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission Photo: Hoang Trieu

According to Ms. Phuong, the fund industry in Vietnam still has a lot of room to expand, as total assets managed by fund management companies only account for nearly 6% of GDP, significantly lower than other countries in the region.

Good investor relations facilitate capital raising

Therefore, promoting the development of the fund industry not only helps attract long-term capital flows but also contributes to building a more stable and sustainable investor base.

At the same time, the expansion of diversified investment funds such as index funds, ESG funds, infrastructure funds, etc. will increase the attractiveness to international investors, creating momentum for sustainable growth of the stock market, promoting economic development, and realizing the strategic goals set by the Government.