Asia Securities Forum AGM brings regional market leaders to Hanoi

Asia Securities Forum AGM brings regional market leaders to Hanoi

The 31st Asia Securities Forum AGM will take place in Hanoi, bringing together securities associations, financial institutions, and market participants from across the region.

Press conference on ASF AGM 2026 took place in Hanoi on September 23. Photo: VBMA

The event runs from September 30 to October 3. A highlight will be a forum titled 'Investing in Vietnam – Advancing in the New Era', focusing on investment prospects, capital mobilisation strategies, and the conditions needed for Vietnam to attract long-term international capital.

Vietnam’s hosting of Asia Securities Forum AGM for the first time comes as its stock market has been upgraded by FTSE Russell from Frontier Market to Secondary Emerging Market status, while aligning with the country’s strategy for developing the securities market through 2030 under Decision No.1726/QD-TTg.

The event will provide an opportunity for financial institutions, securities associations, and international investors to learn about reforms in Vietnam’s capital market, while strengthening connections and sharing experience in securities, bonds, green finance, environmental, social, and governance (ESG) standards, and digital transformation.

According to Hoang Hai Anh, vice chairwoman and secretary general of the Vietnam Association of Securities Business (VASB), the market upgrade will more opportunities for Vietnam to access international capital, but will not by itself be sufficient to entice large-scale, long-term investment. “Market upgrading is necessary, but it is not sufficient,” Hai Anh said.

The next question, she said, is how Vietnam will position itself on the regional capital market map and what advantages it can offer international investors. "Several Asian markets have developed distinctive strengths – Singapore has become a gateway for international capital into Asia, Malaysia has established a strong position in Islamic capital markets, while Thailand has developed an advantage in liquidity."

For Vietnam, alongside continued improvements to market infrastructure and mechanisms, corporate quality will be an important factor. “We need to strengthen corporate capabilities, particularly corporate governance,” she said.

Hai Anh noted that the experience of Japan and South Korea showed that improvements in corporate governance could enhance the quality of individual companies alongside the attractiveness of the market as a whole to investors.

Pham Phu Khoi, vice chairman and secretary general of the Vietnam Bond Market Association (VBMA), said attracting international capital had become increasingly important as Vietnam faces substantial demand for medium- and long-term funding in its next stage of development.

Discussions and analysis at VBMA indicate that a significant gap remains between the funding available from the government, credit and the banking system, and the economy’s overall capital requirements. “To fill that gap, we need to clearly identify where the money will come from,” he said.

However, foreign investor participation in Vietnam’s bond market remains limited. Unlike the equity market, international bond investors typically place significant weight on sovereign and issuer credit ratings when making capital allocation decisions.

Khoi therefore expects the impact of the stock market upgrade to be followed by improvements in Vietnam’s sovereign credit rating and the ratings of bond issuers. "Better creditworthiness could broaden Vietnam’s international investor base while allowing issuers to raise funds on more favourable terms. When credit ratings improve, borrowing costs can fall and maturities can be extended," he said.

The VBMA representative said the potential for attracting capital into bonds could be significantly larger than for equities, given the much greater size of the global bond market.

If credit-rating conditions improve, he expects foreign capital inflows into Vietnam’s bond market could reach around $10-20 billion, equivalent to 10–20 times the amount of capital he estimates could flow into the equity market following the upgrade.

Discussing global capital market trends and their impact on capital flows into Vietnam, Khoi said geopolitical developments, energy prices, and monetary policy were creating an unfavourable environment for bond markets. Conflicts in the Middle East and the Russia-Ukraine war have pushed up oil prices and increased inflationary pressures. Against this backdrop, the outlook for interest rates in the US and other major economies has become less favourable for bond capital flows.

This is particularly relevant for Vietnamese companies planning to raise funds internationally. Khoi noted that US Treasury yields are commonly used as a benchmark when Vietnamese companies issue bonds overseas. When international yields remain high, the cost of raising capital also increases.

"Nevertheless, unfavourable market conditions should not discourage Vietnamese companies from preparing to access international markets. This should not stop us from thinking about reaching international markets. This is the time to prepare and strengthen our internal capabilities," Khoi explained.

Khoi believes the government and Vietnamese companies should use this period to strengthen their preparations and accelerate improvements in credit ratings. When international conditions become more favourable, a stronger credit profile will put Vietnamese issuers in a better position to access external funding.

From another perspective, Hai Anh of VASB said global geopolitical, trade, and monetary policy shifts were creating not only risks but also opportunities for markets entering a new phase of growth.

In a volatile environment, she said, international capital tends to seek destinations that combine growth potential with safety and stability. Vietnam has an opportunity to attract such capital, but that opportunity can only be realised through proactive strategies and early preparation. “For a strategic task, all the issues need to be considered comprehensively and implemented in parallel,” she said.

She said Vietnam’s strategy should go beyond upgrading the market and then considering how to attract capital. Alongside the upgrade, the country needs to develop financial intermediaries, particularly the fund management industry and institutional investor base, which serve as a bridge between international capital and the domestic market.

In addition to foreign capital, Hai Anh said Vietnam should make better use of domestic resources. She cited Japan’s NISA investment account programme, which has encouraged part of household savings to move into investment, and raised the possibility of developing mechanisms suited to Vietnam to mobilise household resources into the capital market.

Beyond the market’s fundamental factors, she said ESG, digital transformation, and AI would increasingly influence the direction of capital flows. ESG, in particular, is no longer simply a matter of sustainable development but is becoming a competitive factor for countries, markets, and companies seeking to attract international capital.

VIR