Việt Nam must restructure to break through in capital market

Việt Nam must restructure to break through in capital market

The structural changes are indispensable for turning Việt Nam's capital market into a dynamic engine of economic growth in the coming decade.

Dr Lê Minh Nghĩa, chairman of the Vietnam Financial Consulting Association (VFCA), speaks at the forum. — VNA/VNS Photo

Việt Nam's capital market needs fundamental restructuring to realise its full potential next year, according to key speakers at the 'Vietnam Capital Market Outlook 2026' forum held on December 12 in Hà Nội. 

The event focused on identifying structural bottlenecks and policy gaps that have inhibited deeper capital mobilisation, sustainable financing and broader investor participation.

Opening the forum, Dr Lê Minh Nghĩa, chairman of the Vietnam Financial Consulting Association (VFCA), said that the capital market must adopt new thinking and approaches to capital flows, the legal framework for digital assets, and strategies for developing Việt Nam's international financial centre. 

He called for innovation in financial instruments that could help mobilise long-term capital. 

Among the financial products, he highlighted, were 'Made in Vietnam' instruments such as green bonds tied to carbon credits, tokenised securities, digital asset-backed products and blockchain-enabled instruments. 

These, he argued, could support both improved capital allocation and expanded investor bases, especially for institutional and long-term investors. 

Dr Nghĩa emphasised that fostering robust, long-term capital sources requires stronger participation from a range of fund types, including institutional investors, pension funds, venture capital and green investment funds, to provide stable funding for businesses. 

Greater involvement by these investors, he noted, is critical for firms seeking to transition from relying heavily on bank credit to more diversified capital market channels. 

At the forum, Nguyễn Đức Hiển, deputy head of the Central Committee for Policy and Strategy, pointed out that Việt Nam's corporate sector remains overly dependent on bank credit, while equity and corporate bond markets have yet to fully meet expectations in terms of depth, liquidity and investor participation. 

He underscored the need for deep reforms in market products, including enhancing the quality of both corporate bonds and equities to better serve long-term financing needs.

Dr Lê Minh Nghĩa, chairman of the Vietnam Financial Consulting Association (VFCA), speaks at the forum. — VNA/VNS Photo

From the regulators' perspective, Bùi Hoàng Hải, deputy chairman of the State Securities Commission of Vietnam (SSC), outlined ongoing steps to increase market openness and meet criteria for the anticipated stock market upgrade. 

Among these measures is the planned launch of a central counterparty (CCP) mechanism, a centralised clearing and settlement system designed to reduce settlement risk and improve operational efficiency. 

The CCP mechanism is expected to begin operations in early 2027, marking a key infrastructure improvement that aligns with international market standards. 

In addition, the SSC is studying new products, such as infrastructure bonds, green bonds, derivative products and expanded market indices, to broaden the investor toolkit.

Nguyễn Sơn, representing the Vietnam Securities Depository and Clearing Corporation (VDSC), stressed that upgrading market infrastructure is essential for international integration. 

He recommended comprehensive improvements to Việt Nam's payment, clearing and custody systems to meet global standards. This includes enhancing the quality of market disclosures and fully developing investor rights mechanisms. 

Such enhancements are viewed as critical for increasing investor confidence and advancing Việt Nam's market toward greater transparency and efficiency.

In his keynote contribution, Dr Cấn Văn Lực, chief economist at BIDV and member of the Prime Minister's Advisory Council, framed market reform within the context of Việt Nam's broader long-term growth model. 

He argued that the country's growth strategy must evolve from one driven primarily by capital and labour to one based on science, technology, innovation and productivity improvements. 

In this framework, the ability to effectively mobilise, allocate and utilise capital is a condition for achieving higher growth and sustainable economic transformation.

Discussions at the forum reiterated that despite progress on market framework milestones in 2025, realising a breakthrough in capital market development will require coherent policy implementation, diversified financial instruments, robust legal and regulatory frameworks, and stronger market infrastructure. 

Structural enhancements in these areas are expected to support broader participation from domestic and international investors alike, reduce over-dependence on bank credit and better align Việt Nam's capital markets with global practices.

The forum's focus reflects a growing consensus among market participants that foundational achievements must be translated into tangible market outcomes in 2026, including deeper liquidity, a wider range of financing tools, improved investor protection and greater stability. 

Industry leaders highlighted that these structural changes are indispensable for turning Việt Nam's capital market into a dynamic engine of economic growth in the coming decade. 

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