Hanoi (VNA) – As Vietnam strives to achieve double-digit economic growth and become a developed nation by 2045, the country must reduce its reliance on bank credit by developing deeper capital markets and building international financial centres capable of attracting long-term investment from around the world.
The strategy centres on upgrading Vietnam's stock market and establishing the International Financial Centre in Ho Chi Minh City and Da Nang, which are expected to diversify capital sources, strengthen the country's financial resilience and improve its competitiveness in the global economy.
Upgrading the stock market
After more than 25 years of development, Vietnam's stock market has become one of the country's key financial pillars, with market capitalisation reaching about 78% of GDP by the end of 2025.
A significant milestone came when FTSE Russell upgraded Vietnam to Secondary Emerging Market status, effective from September 2026. According to World Bank estimates, the upgrade could attract up to 25 billion USD in foreign investment by 2030, creating new opportunities for businesses seeking long-term capital.
Pham Thi Thuy Linh, head of the Department of Securities Market Development, under the State Securities Commission, said the market upgrade should be viewed not as an end goal but as a catalyst for broader reforms.
She said Vietnam is focusing on improving corporate governance, enhancing information transparency, and attracting more long-term institutional investors. To align the market with international standards, the securities sector is rolling out the new trading system KRX and introducing a central counterparty (CCP) clearing mechanism.
At the same time, regulators are expanding the range of financial products available to investors, including covered warrants, green bonds and exchange-traded funds (ETFs), helping create a more diversified and mature capital market.
Tran Hieu, head of Business Development at Mirae Asset Vietnam, said Vietnam possesses unique demographic advantages, with more than 60% of its population of working age and a rapidly expanding middle class.
However, only around 8–10% of Vietnamese currently participate in the stock market, compared with more than 30% in regional markets such as Thailand and Malaysia, where stock market capitalisation regularly exceeds 100% of GDP.
He described the gap as enormous growth potential, noting that as incomes rise and the economy expands, more households are likely to shift savings from traditional assets such as gold and bank deposits into stocks, bonds and investment funds.
According to Hieu, the combination of stronger domestic participation and increased foreign investment following the FTSE Russell upgrade could transform Vietnam's stock market into a major source of long-term financing for businesses and strategic infrastructure projects.
Building gateways to global finance
For the Vietnam International Financial Centre (VIFC) in Ho Chi Minh City, it is envisioned as an institutional “special zone” with advanced mechanisms designed to attract the world’s leading financial institutions. It will enable Vietnamese businesses to raise capital directly from international markets at competitive costs.
Associate Professor Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC Executive Board, said Vietnam needs a large-scale international financing channel to reduce pressure on the domestic banking system and better meet growing demand for medium- and long-term investment capital.
He said the financial centre would focus on financial technology (fintech), green finance and regulatory sandbox mechanisms that allow innovative financial products and business models to be tested under controlled conditions.
Duong Thanh Tung, Partner at Deloitte Strategy, Risk and Transaction - M&A - Southeast Asia – Vietnam, said the international financial centre would also strengthen investor confidence by providing transparent legal frameworks and internationally recognised dispute resolution mechanisms.
With clearer rules and greater freedom for capital flows, long-term institutional investors and global pension funds would be more likely to view Vietnam as a strategic investment destination rather than merely a short-term trading market, he said.
Diversifying long-term funding sources
Experts also identified public-private partnerships (PPP) as another critical financing channel, particularly as Vietnam requires trillions of Vietnamese dong each year to develop transport, energy, and digital infrastructure.
Doan Viet Nam, Deputy General Director of the Bank for Investment and Development of Vietnam (BIDV), said commercial banks are arranging financing for major PPP projects but called for more comprehensive legal frameworks governing revenue-sharing mechanisms and government guarantees for strategic investments.
He said greater transparency in allocating risks and benefits would encourage stronger private-sector participation in national infrastructure development.
Meanwhile, the development of project bonds and green bonds has been identified as an increasingly important tool for attracting long-term international capital.
As environmental, social and governance (ESG) standards become central to global investment decisions, sustainable financing instruments can help Vietnamese businesses reduce borrowing costs while strengthening their international reputation.
Thai Huong, Chairwoman of TH Group, said high-tech agriculture is among the sectors capable of mobilising capital directly from communities if supported by transparent policies and appropriate financing mechanisms.
She said enabling citizens to invest in sustainable agricultural value chains would not only provide businesses with long-term funding but also generate broader social benefits by promoting organic agriculture, improving food security and advancing social welfare.
According to experts, diversifying funding channels through stronger capital markets, international financial centres, PPPs, and sustainable finance will be crucial to reducing Vietnam's dependence on bank credit. Together, these reforms are expected to create a more resilient financial system, mobilise global capital more effectively and provide the long-term resources needed to support the country's ambition of achieving high-income, developed-country status by 2045./.
