Hanoi (VNA) - Vietnam is entering a new era of dynamic growth, with the private sector expected to play a pivotal role. This shift is driving a surge in capital demand for investment and expansion, presenting major opportunities for the country’s financial markets, according to insiders.
Unlocking capital market potential
Vietnam’s economy is poised for structural transformation and an enhanced global presence. According to Do Ngoc Quynh, Vice Chairman of FiinRatings and Secretary-General of the Vietnam Bond Market Association (VBMA), the private sector is set to become a key driver of growth. It should generate strong demand for capital and open up vast opportunities across both equity and debt markets, domestically and internationally.
Quynh noted that private enterprises urgently require medium- to long-term capital to invest in technology, improve competitiveness, and integrate more deeply into global value chains. This demand provides a strong foundation for capital market development, particularly through diverse financial products such as shares and corporate bonds, serving both local and foreign investors.
However, Vietnam’s capital market remains underdeveloped. The corporate bond segment, a crucial source of long-term funding, accounts for just 10.8% of GDP in 2024, equivalent to 1.25 quadrillion VND, falling short of the Government’s 25% target for 2030. By comparison, this figure ranges between 30–40% in many Asian economies and exceeds 100% in the US and Japan.
Quynh pointed out that developed markets offer a wider range of instruments such as green bonds, convertible bonds, and securitised debt with broad participation from institutional investors like pension funds, insurance companies, and individual investors via transparent channels. Vietnam, in contrast, still lacks this level of depth.
He also highlighted key limitations - an overreliance on commercial banks, inconsistent product quality, and underdeveloped frameworks for credit guarantees, credit ratings, and risk management. Additionally, infrastructure for information, transactions, and oversight remains incomplete.
Quynh argued that unlocking the domestic capital market, especially the debt segment, is critical.
(Photo: VietnamPlus)
Commitment to reform
Commenting on the macro-economic outlook, Bui Hoang Hai, Vice Chairman of the State Securities Commission, said 2025 marks the beginning of a new development phase. The Government is aiming for GDP growth of 8% or more this year, and double-digit growth from 2026 to 2030.
Public investment will continue to be a core driver. As the final year of the 2021–2025 public investment plan, 2025 will see state capital expenditure reach 791 trillion VND, about 6.4% of GDP, supporting infrastructure and industrial sectors.
He noted that in the first seven months of the year, total import–export turnover reached 514.7 billion USD, up 16.3% year-on-year, maintaining a trade surplus of 4 billion USD.
Globally, interest rates are easing after a long tightening cycle - encouraging capital flows. However, geopolitical tensions, rising protectionism, and climate-related risks continue to pose challenges.
Hai reaffirmed the Government's consistent recognition of the private sector as a key economic force. Resolutions from the Party (No. 68), National Assembly (No. 198), and Government (No. 138) all stress the importance of harnessing private the economic sector in this new development phase.
To deliver on this commitment, a series of policy measures have been rolled out - ranging from administrative reform and innovation support to digital transformation and improved capital access. The Government recognises the enormous capital needs of the private sector as a significant opportunity for credit institutions, financial markets, and especially the corporate bond market.
As the industry regulator, the commission is focusing on five core areas: developing the institutional investor base, improving product quality, enhancing transparency, upgrading market infrastructure, and strengthening supervision. Among these, Hai identifies the corporate bond market as a particular priority.
Soleil Corpuz, Senior Research Analyst at the Credit Guarantee and Investment Facility (CGIF), acknowledged that Vietnam’s corporate bond market is recovering but remains small relative to GDP and regional peers.
However, she points to the government’s recent policy reforms, particularly Party Resolution No. 68, as a positive signal. These measures are expected to encourage private-sector investment, improve capital access, promote green finance, and develop a robust credit rating framework./.
