Capital channel reform critical to Vietnam's next growth phase

Capital channel reform critical to Vietnam's next growth phase

Restructuring Vietnam's capital channels has become increasingly urgent as the country seeks to mobilise an estimated $1.54 trillion to support its double-digit growth ambitions over the next five years, delegates heard at a seminar in Hanoi.

VIR hosted the seminar on July 15, bringing together policymakers, financial experts, and market participants to discuss the current structure of capital channels, identify delays, and explore solutions to improve capital allocation and resource mobilisation for economic growth.

The event comes as Vietnam marks the thirtieth anniversary of its securities industry and the 26th anniversary of the official operation of its stock market, a timely backdrop for discussions on how capital markets can better support the country's next phase of growth.

VIR editor-in-chief Pham Van Hoanh. Photo: Chi Cuong

In his opening remarks, VIR editor-in-chief Pham Van Hoanh said that the occasion was an opportunity to look back on the market's remarkable achievements over the past three decades and a chance to reflect on the road ahead, where the stock market must play an increasingly important role in providing medium- and long-term capital for the economy.

"As a specialised economic and financial news agency and the official media outlet of the Ministry of Finance, VIR is organising today's seminar to create an open, multidimensional, and substantive forum for policymakers, experts, businesses, and investors to discuss a highly important and timely issue: building sustainable capital sources for an economy that is growing at a high pace," said Hoanh.

"We hope the discussions at today's seminar will generate practical ideas and policy recommendations to improve the mobilisation and allocation of financial resources, particularly as Vietnam faces enormous capital demand to support its target of achieving double-digit economic growth during the 2026-2030 period and beyond," he added.

Photo: Chi Cuong

Hoanh noted that, according to estimates, Vietnam's investment capital requirement to sustain annual economic growth of 10 per cent or higher over the five consecutive years from 2026 to 2030 is expected to reach approximately $1.54 trillion. Of this amount, state budget resources are expected to meet only around 20 per cent, while the remaining 80 per cent will need to be mobilised through other financing channels.

"Bank credit remains the primary capital channel for the economy. However, the room for monetary policy to further support economic growth is becoming increasingly constrained. During the first six months of 2026, deposit mobilisation in the banking system continued to lag credit growth, putting pressure on liquidity and deposit interest rates, which in turn has pushed lending rates higher," he said. "Higher financing costs are affecting business performance and investment expansion decisions, while also posing potential risks of rising non-performing loans for the banking system."

Explaining the rationale behind the seminar's theme of 'Restructuring Capital Channels', Hoanh said VIR hoped to work with policymakers, experts, businesses, and investors to exchange views, analyse and discuss Vietnam's capital channels, potential funding sources for the economy, the sustainability of capital flows, and the policies needed to foster stronger and more sustainable capital markets, thereby contributing to the country's economic development in the new era.

VIR