Vietnam's stock market eyes bigger role in meeting $1.5trn investment needs

The issue was highlighted at the Vietnam Capital Market Forum 2026, jointly organized by Tuoi Tre (Youth) online newspaper and the State Securities Commission of Vietnam (SSC) in Ho Chi Minh City on Friday.

The event took place as the country's securities industry marked 30 years of development and its stock market entered a new phase following its upgrade to secondary emerging market status by FTSE Russell.

Stock market urged to take on a greater funding role

In his opening remarks, Tran Xuan Toan, deputy general director of the Ho Chi Minh City Press and Radio-Television Agency and editor-in-chief of Tuoi Tre, said the key question was not simply how large the stock market would become, but how much it could contribute to the quality of Vietnam's economic growth.

He stressed the need to direct capital into production, technological innovation, infrastructure and sectors generating added value, while helping businesses gain access to long-term funding and reduce their heavy dependence on bank credit.

"How can businesses gain access to long-term capital and gradually reduce their excessive dependence on bank credit?" he asked.

Studies indicate that bank credit currently accounts for around 51 percent of the economy's total capital, while funds raised through the stock market and corporate bonds make up only around 13-14 percent, Toan said.

He noted that the recent stock market upgrade had opened an important door, but would not automatically bring investment into Vietnam.

"Capital flows will only stay when they see a transparent market that is easily accessible, offers quality products, has well-governed businesses, and provides reliable mechanisms to protect investors' rights and interests," he said.

Toan emphasized the need to build trust through accurate information, predictable policies, good corporate governance and effective use of capital.

"This trust is a shared asset of the entire market," he said.

He also outlined Tuoi Tre's role in providing reliable market information, promoting substantive dialogue and connecting Vietnamese businesses with the knowledge, standards and opportunities of the modern capital market.

Upgrade opens opportunities for long-term investment

Vu Thi Chan Phuong, chairwoman of the SSC, said Vietnam's stock market had made significant progress over the past three decades, gradually affirming its role as a medium- and long-term capital mobilization channel for the economy.

As Vietnam needs to mobilize nearly $1.5 trillion in investment capital during 2026-30, developing the stock market as a major channel for medium- and long-term funding has become increasingly important.

As of October 21, the equity market's capitalization had reached VND10.16 quadrillion (about $393 billion), equivalent to 79.1 percent of estimated 2025 GDP, while the listed bond market was valued at approximately VND2.94 quadrillion ($114 billion), or 22.9 percent of GDP.

The number of investor accounts had exceeded 14 million.

The September 21 upgrade by FTSE Russell from frontier to secondary emerging market status is expected to improve Vietnam's access to institutional investors and international investment capital.

However, Phuong said the upgrade was only the beginning of a new development phase, with the market's ability to attract investment depending not only on its new status but also on market quality, corporate attractiveness and the investment environment.

"It can be said that the upgrade creates additional opportunities for the market, but the quality of business operations and growth prospects are the key factors in attracting long-term investment capital," she said.

She also pointed to external challenges, including geopolitical developments, energy supply and prices, and international monetary and interest rate policies, which could affect investment flows and financial markets.

Phuong called for closer coordination among ministries and agencies to review foreign ownership limits, particularly in conditional business sectors, and facilitate foreign investors' access to the market.

She also proposed developing appropriate foreign exchange risk-hedging instruments to help international investors manage currency risks when investing in Vietnam.