Stock market urged to take bigger role in financing next growth phase

Stock market urged to take bigger role in financing next growth phase

With investment demand expected to far exceed the capacity of the state budget and bank lending, restructuring capital channels and strengthening the stock market's financing role have become essential to sustaining Vietnam's next phase of economic growth.

Bui Hoang Hai, vice chairman of the State Securities Commission, said at VIR's 'Restructuring Capital Channels' seminar on July 15 that Vietnam's stock market has become an integral part of the country's financial system, helping allocate resources, support economic growth, and enhance enterprise competitiveness.

"Entering 2026, both the domestic and global economies have faced significant headwinds, particularly geopolitical tensions in the Middle East," Hai said. "Energy market disruptions caused by global supply chain fragmentation have intensified inflationary pressures. Together with external uncertainties, domestic liquidity constraints have increased the cost of capital across the economy. Nevertheless, Vietnam's stock market has continued to deliver encouraging results."

According to Hai, as of May 29, the Vietnamese stock market's total capitalisation had reached approximately $408 billion, equivalent to 82.6 per cent of estimated 2025 GDP. The number of investor accounts exceeded 13 million, surpassing ahead of schedule the target of 11 million securities trading accounts by 2030 set out in the Stock Market Development Strategy.

“Capital raising through the equity market has also become much more vibrant than in previous years. During the first five months of 2026, listed companies and registered public companies raised approximately $11.13 billion through share issuances and initial public offerings, up 86.5 per cent compared to 2025 and 2.5 times the average level recorded over the past five years,” he said.

“The corporate bond market has continued its recovery. By the end of May, the outstanding value of listed bonds on the stock exchange reached approximately $108.4 billion, equivalent to 22 per cent of estimated 2025 GDP,” he added. “These figures once again underscore the stock market's increasingly important role as a medium- and long-term capital channel for the economy.”

Bui Hoang Hai, vice chairman of the State Securities Commission. Photo: Chi Cuong

Vietnam's stock market has also recently achieved a major milestone, with FTSE Russell confirming its upgrade to secondary emerging market status. The reclassification, which will officially take effect in September, is expected to open a new chapter for foreign capital inflows into Vietnam's capital market.

“However, meeting the country's growth targets for the 2026-2030 period will require enormous financial resources,” noted Hai. “Total investment demand over the five-year period is estimated at $1.46 trillion, while the state budget is expected to provide only about $327 billion, or roughly 20 per cent. The remaining 80 per cent will need to come from private and international capital.”

Hai also referred to the message delivered by General Secretary and State President To Lam at the conference to disseminate and implement the Resolution of the 14^th Party Central Committee's second plenum, stressing that the economy can no longer rely on a single source of capital, nor can the entire burden of development continue to rest on the state.

“Against a backdrop of limited fiscal resources and bank credit approaching prudential safety limits, restructuring capital channels has become an urgent priority,” he said. “In this context, the stock market must play a much stronger role as the economy's primary medium- and long-term capital mobilisation channel.”

Hai expressed his hope that the discussions and recommendations presented at the seminar would provide valuable input for regulators in advising competent authorities on strategic orientations and concrete policy solutions to further develop the capital market, restructure capital channels, and support the country's ambitions for high-quality and sustainable economic growth.

“On behalf of the regulatory authorities, I would also like to express my sincere gratitude to the government, ministries, agencies, organisations and individuals who laid the foundations for Vietnam's modern financial market,” said Hai. “I also extend my appreciation and congratulations to market regulators, listed companies, financial institutions, investors, and everyone who has contributed to the development of Vietnam's stock market over the past three decades.”

VIR