Hanoi (VNA) – The upgrade of Vietnam's stock market status from 'frontier' to 'secondary emerging' is opening new opportunities for the fund industry, while requiring stronger professional capacity, higher governance standards and more effective mobilisation and allocation of long-term capital.
The remark was made by Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), at the Vietnam Fund Awards 2026 (VFA 2026) programme themed “The fund industry in the new era: Unlocking capital flows for high and sustainable growth” in Hanoi on September 22.
The event was jointly organised by the Vietnam Securities Depository and Clearing Corporation (VSDC), Tai Chinh – Dau Tu (Finance – Investment) newspaper and FiinGroup, under the auspices of the Ministry of Finance and the SSC.
According to Phuong, the market status upgrade creates new opportunities while placing greater demands on professional investment institutions. The development of open-ended funds and exchange traded funds (ETFs) has diversified products and investment choices, with the two types now accounting for about 80% of total net asset value.
She said the fund industry should not focus solely on increasing assets under management, but also improve the quality of capital flows, governance capacity and professionalism, and strengthen its contribution to the financial market and the economy.
The SSC will continue reviewing and improving regulations governing fund management companies, investment funds, distribution agents and service providers, while facilitating the development of diversified fund types and investment products suited to people’s long-term savings and investment needs, Phuong said.
Product innovation must go hand in hand with risk management, transparency, system safety and protection of investors’ legitimate rights, she added.
The SSC will also promote restructuring of the investor base towards a larger share of institutional and professional investors, coordinating with Ministry of Finance units and market members to implement targets of Decision No. 1413/QD-TTg on comprehensive financial market reform and Decision No. 3168/QD-BTC on restructuring investors and developing the securities investment fund industry, towards building a more balanced and professional investor base capable of providing more stable and long-term capital to the market.
Products are expected to become more diversified and professional and better aligned with the economy’s capital needs, including those in infrastructure, innovation, digital transformation, green growth and sustainable development, Phuong went on.
Circular No. 136/2025/TT-BTC has already expanded the legal framework for such products, including infrastructure bond funds and money market funds, while adding regulations on index funds. This provides a basis for further developing the product ecosystem in the coming period.
The SSC will further strengthen the competitiveness and operating standards of fund management companies through the application of science and technology, greater transparency and professional ethics. It will also enhance risk-based supervision and strictly handle violations, particularly those involving asset valuation, liquidity, conflicts of interest, and management of investors’ assets.
Another focus will be to broaden public access to fund products. The SSC will coordinate with stock exchanges, VSDC, securities and fund management companies, associations and the media to provide investors with information on fund operations, risks, costs, liquidity, product selection and asset allocation, fostering disciplined, long-term investment habits.
Vietnam’s upgrade by FTSE Russell to secondary emerging market status is also expected to facilitate deeper access to international capital. According to FTSE Russell, Vietnam’s entry into the FTSE Global Equity Index Series (FTSE GEIS) will be carried out in four tranches from September 2026 to September 2027.
Phuong said Vietnam should seek not only index-tracking capital but also active, long-term investment from global funds, asset managers and major financial institutions in the world. The fund industry therefore needs to strengthen asset management capacity to international standards, develop products suitable for international investors and meet higher requirements for transparency, governance and risk management.
The commission will also step up dialogue with international investors and facilitate deeper participation by foreign financial institutions in the Vietnamese market, Phuong added.
According to Nguyen Son, Chairman of the Board of Members of VSDC, as more international capital flows into Vietnam, the fund industry needs an increasingly transparent and reliable benchmark to identify, assess and select suitable investors and funds.
The VFA is expected to become an annual forum for sharing standards and good practices and discussing issues facing Vietnam’s fund industry, Son said.
As of the end of June 2026, Vietnam had 43 fund management companies and 141 securities investment funds. Including entrusted investment portfolios, total assets under management by fund management companies reached approximately 846 trillion VND (over 32.5 billion USD).
Over the past 10 years, assets under management by fund management companies have grown by more than 20% annually on average. Notably, open-ended funds and ETFs now account for around 80% of total net asset value, thanks to their advantages in liquidity, portfolio allocation flexibility and transparency./.
