Total assets at fund management companies account for just under 6% of GDP

On March 28, in Ho Chi Minh City, the Ministry of Finance held a conference on "Investment funds and foreign investment in the new development era of Vietnam".

Minister of Finance Nguyen Van Thang speaks at the conference. *Photo: M. Tuan*

In his opening speech, Minister of Finance Nguyen Van Thang affirmed that 2024 marks the success of Vietnam's economy and capital market with a total mobilized capital of nearly VND930 trillion, 1.3 times higher than in 2023, equivalent to 25% of total social investment capital. Total realized foreign direct investment in 2024 will reach 25.4 billion USD, up 9.4% over the previous year, reaching the highest level ever.

However, according to the Minister of Finance, in the challenging context of global geopolitics and economy, Vietnam's capital market still faces many difficulties and challenges ahead.

Among them, the operation of the securities investment fund system is not commensurate with its development potential. Regarding foreign direct investment (FDI), according to the views of investors and international organizations, there are still some obstacles in the implementation process regarding land, construction, tax, customs, administrative procedures, etc.

At the conference, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said that the fund industry in Vietnam still has a lot of room to expand, as the total assets under management at fund management companies only account for nearly 6% of GDP, significantly lower than other countries in the region.

To achieve the goal of developing the fund industry, Ms. Phuong said, the State Securities Commission is developing a project to train investors to help change the habit of self-investment to investment through professional investment funds, from speculation to long-term, stable investment. In addition, the State Securities Commission is also implementing the diversification of investment fund types.

Speaking on the sidelines of the conference, Mr. Don Lam, General Director and founding shareholder of VinaCapital Group, said that the Vietnamese stock market is still mainly dominated by small individual investors, accounting for 90% of the total number of investors.

To improve the sustainability of the financial market, according to Mr. Don Lam, in addition to changing the awareness and behavior of individual investors and encouraging them to participate in professional investment funds, the State and management agencies need to consider policies and support mechanisms to promote the development of investment funds, contributing to mobilizing long-term capital for the economy.

Concluding the conference, Minister of Finance Nguyen Van Thang emphasized that the multi-dimensional, frank assessments and objective suggestions shared by delegates at the conference will "advise" the Ministry of Finance on solutions to develop investment funds to attract domestic and foreign resources for development investment, improving the efficiency of foreign investment. In particular, it will contribute to perfecting mechanisms and policies and advising the Government on implementing solutions to promote the country's socio-economic development in the new era.

Source: https://hanoimoi.vn/tong-tai-san-tai-cac-cong-ty-quan-ly-quy-chi-chiem-gan-6-gdp-697180.html