Hanoi (VNA) - In order to proactively prepare the nation for a new era of development, the Ministry of Finance (MoF) is focused on mobilising all available financial resources both domestically and internationally, including investment funds for national growth.
As the National Assembly has set a GDP growth target of 8% or higher in 2025, Vietnam is implementing a coordinated set of measures to maximise financial resources, both domestic and foreign.
Unlocking resources
At a conference held by the MoF on March 28 on the role of investment funds and foreign investment in Vietnam’s development, experts held that Vietnam’s capital market has grown rapidly, playing an important role in attracting resources for development investment.
They underlined that to fulfil the 8% growth target for 2025, which lays a strong foundation for achieving double-digit growth in the next phase, Vietnam must maximise resources for development investment. Total social investment capital in 2025 is expected to reach approximately 174 billion USD, with private investment accounting for 96 billion USD, a significant increase compared to 80 billion USD in 2024.
At the conference, Minister of Finance Nguyen Van Thang emphasised that the Party and Government are determined to solve all bottlenecks to unlock all available resources for development, aiming to successfully achieve the economic growth target of 8% or higher in 2025. This will set the stage for double-digit growth in the near future and help propel the nation into a new era of development.
Thang also mentioned that, in addition to the Government’s measures to streamline and improve the efficiency of the administrative apparatus, the ministry is focusing on mobilising all available resources, both domestically and internationally, including investment capital through investment funds and foreign direct investment (FDI).
Investment funds leads capital market
According to the State Securities Commission of Vietnam (SSC), the participation of investment funds is increasingly important, as these professional investors possess financial capacity and play a leading role in driving the market forward. To date, the securities investment fund system has established with 43 fund management companies and 123 investment funds. However, the involvement of these organisations in the capital market has not yet matched its potential, as the total net asset value of the funds at the end of 2024 accounted for only 1.2% of the stock market capitalisation.
Currently, the stock market capitalisation stands at over 7.4 quadrillion VND (287.37 billion USD), equivalent to 65% of the 2024 GDP. The total value of foreign investors' portfolios is estimated to exceed 48 billion USD, accounting for 16% of the market capitalisation.
Foreign investment organisations not only bring long-term capital but also contribute to raising corporate governance standards and financial transparency for Vietnamese businesses. The emergence of open funds, exchange-traded funds (ETFs), and real estate funds has also helped diversify investment options. Open funds and ETFs account for 86% of total net assets due to their high liquidity, flexible investment portfolios, and transparency.
Vu Thi Chan Phuong, Chairwoman of the State Securities Commission of Vietnam, noted that the capital market, particularly the stock market, must further strengthen its role as a primary channel for medium- and long-term capital.
The expansion of diverse investment funds, such as index funds, ESG funds, and infrastructure funds, will not only enhance the market’s appeal to international investors but also provide a crucial impetus for sustainable stock market growth, supporting economic development and achieving the Government’s strategic objectives.
To promote this, Phuong said that the State Securities Commission of Vietnam is developing a training programme for investors. The goal is to leverage all available resources from regulatory bodies and market participants to educate and raise awareness among small retail investors. This initiative aims to shift investor behaviour from self-directed trading to professional fund investment, with a focus on long-term, stable investments over speculative trading.
The commission is also exploring the introduction of new types of funds, such as index funds, money market funds, and infrastructure bond funds, while reviewing the current index regulations to improve flexibility in developing new indices to meet market demand.
Simon Williams, Director of External Affairs and Government Relations at BlackRock, a global investment fund, remarked that attracting foreign investors is not an easy task, as they have many choices across different countries. Therefore, Vietnam must listen to feedback from foreign investors, with a focus on engaging strategic investors and maintaining regular policy dialogues.
Williams urged the MoF and the State Securities Commission of Vietnam to establish clear strategies for consulting with key investors and fostering ongoing dialogue with multiple stakeholders in the ecosystem.
Speaking on the sidelines of the conference, Don Lam, CEO and founding shareholder of VinaCapital, emphasised that enhancing the sustainability of the financial market requires a change in mindset and behaviour from individual investors, encouraging them to participate in professional investment funds.
He highlighted that investing in funds reduces risk, benefits from fund managers' expertise, and provides higher long-term returns compared to short-term speculative trading.
The CEO also stressed the need for stronger education and communication about the benefits of investing in professional funds, along with policies and mechanisms to support the growth of investment funds./.
