The fund industry still has a lot of room to expand in Vietnam.

Resources for medium and long term goals

With a GDP growth target of 8% or more in 2025, creating momentum for double-digit growth in the 2026–2030 period, Vietnam is aiming to become a high-income country by 2045. Total social investment in 2025 is expected to be around 174 billion USD, of which private investment accounts for 96 billion USD, a sharp increase compared to 80 billion USD in 2024.

According to experts, to achieve this goal, it is necessary to mobilize financial resources, both domestic and foreign, to the maximum and effectively to support rapid and sustainable growth. In that context, the capital market, especially the stock market, bond market and investment funds, must further promote their role as the main medium- and long-term capital channel.

Speaking at the conference "Investment funds and foreign investment in the new development era of Vietnam" on March 28, Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), emphasized the important role of investment funds in the current development context.

According to Ms. Phuong, the stock market capitalization has now exceeded VND7.4 quadrillion, equivalent to 65% of GDP in 2024. The total value of foreign investors' investment portfolios is estimated at more than USD48 billion, accounting for 16% of market capitalization. Not only providing long-term capital, foreign investment organizations, when participating in the Vietnamese stock market as strategic investors, also contribute to improving governance standards and enhancing financial transparency for domestic enterprises.

Along with the strong development of the stock market, the investment fund industry in Vietnam has also continuously expanded in both quantity and scale. Currently, the country has 43 fund management companies with 123 securities investment funds, total assets under management reaching over 750 trillion VND, an increase of more than 7 times compared to 2014.

However, according to Ms. Vu Thi Chan Phuong, despite significant developments, the fund industry in Vietnam still has a lot of room for expansion. Currently, total assets under management at fund management companies only account for nearly 6% of GDP, much lower than other countries in the region.

Promoting the strong development of the fund industry not only helps attract long-term capital flows but also contributes to building a more stable and sustainable investor system. In particular, the expansion of investment fund types such as index funds, ESG funds, infrastructure funds, etc. will not only increase the attractiveness to international investors but also create an important driving force for the sustainable growth of the stock market.

Vietnam's capital market offers many opportunities for investors.

Mr. Don Lam, CEO of VinaCapital, emphasized the importance of a strong financial system and transparent financial infrastructure in attracting foreign investment funds to Vietnam's key industries.

"We have seen strong growth in fund products in Vietnam in recent years. However, to attract large investment funds, there needs to be a transparent fund management system, consistent with international practices and clear policy mechanisms," said Mr. Don Lam.

Attracting green capital

Assessing the opportunities to attract foreign investment into Vietnam's capital market, Mr. Shantanu Chakraborty, Country Director of the Asian Development Bank (ADB), Resident Office in Vietnam, affirmed that Vietnam's capital market can bring many opportunities for both domestic and foreign investors, including investment funds. From stocks and bonds to derivatives and mutual funds, Vietnam's capital market is diverse and growing rapidly.

According to Mr. Shantanu Chakraborty, Vietnam has significant growth potential in the bond market. Total outstanding bonds in Vietnam currently account for just over 30% of GDP, compared to total outstanding bank credit of over 120% of GDP. The bond market and income funds can play a much larger role in mobilizing both public and private capital to finance the country's development.

In particular, the green capital market is becoming an important driving force to help private enterprises access medium- and long-term financial resources for sustainable development.

Mr. Shantanu Chakraborty said that ADB has been actively supporting the development of capital markets in Vietnam through many initiatives, projects and partnerships to strengthen financial infrastructure and promote investment opportunities, including increasing the supply of local currency bonds in Vietnam.

To promote private sector development, ADB has established a private sector development unit at its Vietnam resident office to help Vietnamese businesses mobilize green capital.

“We hope this will contribute to the Government’s policy of creating a supportive environment to increase the private sector’s contribution to GDP from 43% in 2020 to 60%–65% by 2030,” Mr. Shantanu Chakraborty emphasized.

Source: https://baodaknong.vn/nganh-quy-van-con-nhieu-du-dia-de-mo-rong-tai-viet-nam-247590.html