Hanoi (VNA) - Vietnam will require substantial investment in infrastructure, technology, digital transformation, green transition and innovation to achieve double-digit GDP growth and sustain it for consecutive years.
The funding need has outgrown bank credit, making a multi-tiered, multi-channel financial system urgent.
Capital pressure for growth
The Ministry of Finance estimates development investment for 2026-2030 at a minimum of 38.5 quadrillion VND (1.48 trillion USD), or about 40% of GDP. The state budget is expected to provide only about 20%, or more than 7.7 quadrillion VND, leaving over 80%, or more than 30 quadrillion VND, to be raised from the broader economy. That makes expanding capital mobilisation channels beyond bank credit essential.
By mid-July, outstanding credit exceeded 20.08 quadrillion VND, up 8.04% from the start of the year, while deposits rose only 6.32% to nearly 18.78 quadrillion VND. The 1.3 quadrillion VND gap signals capital demand is growing faster than the banking system’s capacity to supply funding.
No developed economy relies primarily on commercial banks for medium- and long-term capital, said Dr. Tran Du Lich, former Director of the Ho Chi Minh City Institute of Economics. Infrastructure, energy, technology and green transition projects require maturities of 10 to 20 years or longer. Placing most of that burden on banks would increase liquidity pressures and maturity risks, he added.
Building a financial ecosystem
Against that backdrop, the comprehensive financial market reform plan under the Prime Minister's Decision 1413/QD-TTg, issued in late July 2026, marks a move toward reshaping how the economy allocates capital. The focus is not just on expanding market size but on building a modern, transparent financial ecosystem connected to global capital flows.
The plan targets stock and corporate bond markets, investment funds and financial intermediaries, while modernising trading infrastructure, improving disclosure quality and strengthening risk oversight. Deeper financial markets would give the economy greater access to medium- and long-term funding and gradually reduce dependence on bank credit.
Whitney Pham, executive board member of the Global Onchain Economic Alliance, said tax incentives and investment costs no longer primarily determine a market’s appeal. Financial institutions are paying more attention to transparency, policy predictability and modern financial infrastructure that allows capital to flow smoothly among markets.
Vietnam is developing an international financial centre, completing the legal framework for digital assets, studying a central bank digital currency (CBDC), building a carbon market, modernising payment systems and forming new financial products.
These efforts show Vietnam’s deepening integration with international financial markets and provide a foundation for attracting long-term capital for innovation, high technology and green transition./.
