Comprehensive reform of Vietnam's financial market

Managing agencies aim to increase the efficiency of capital mobilisation through the issuance of stocks and bonds, and at the same time improve the capacity of intermediary financial institutions.

Vietnam is moving towards a comprehensive financial market reform with the goal of building the market to become an effective capital mobilisation channel for the economy, operating according to market principles.

This orientation is stated in the overall reform project of Vietnam's financial market to 2045 signed and promulgated by Deputy Prime Minister Nguyen Van Thang on July 27.

According to the project, Vietnam aims to synchronously develop components of the financial market, including banking, securities, insurance, capital markets and new financial products.

By 2045, the financial market is expected to operate according to market principles with an institutional system, infrastructure, products, investor structure and supervision mechanism that meet international standards.

In that picture, the stock market is identified as the main medium and long-term capital mobilisation channel of the economy. The banking system will continue to develop in a safe and modern direction, the insurance sector will develop sustainably and Vietnam's International Financial Centre will gradually become a focal point connecting capital flows in the region.

Developing the capital market is one of the focuses of the reform process. According to the given orientation, the market will be developed in the direction of openness, transparency, expanding in both scale and depth to improve the efficiency of mobilising medium and long-term capital for businesses and the economy.

The operator also aims to increase the efficiency of capital mobilisation through issuing stocks and bonds, while improving the capacity of securities companies and intermediary financial institutions.

Along with that is the restructuring of the investor platform in the direction of increasing the role of institutional investors such as investment funds, pension funds and insurance companies, thereby gradually reducing dependence on individual investors.

By 2030, the value of foreign investors' assets in the capital and stock markets is expected to reach about 15% of GDP. Total net assets of stock investment funds reach 5% of GDP, while the asset size of pension funds is expected to grow by an average of 11.5% per year in the period 2026 - 2030.

Along with the development of the capital market, the banking system will continue to be modernized through promoting digital banking, expanding financial inclusion, improving credit quality and strengthening system safety.

Regarding market infrastructure, Vietnam aims to complete the payment system connection with regional and international partners by 2028 at the latest. The central clearing partner (CCP) mechanism on the underlying securities market is expected to be deployed in 2027. In the period 2030 - 2035, a shared database serves the public. Financial market management and supervision will be built.

Along with that, new products and markets will gradually be put into operation with breakthrough mechanisms to increase the scale and liquidity of the capital market.

To realise these goals, the Government offers eight key groups of solutions.

Institutionally, regulatory agencies will review and amend current regulations, and research and develop laws on management and supervision of financial markets and financial services to unify the management framework.

For the product solution group, Vietnam will gradually develop the crypto asset market in addition to the stock, bond, derivatives, currency, credit and insurance markets. The green capital market is also promoted through the development of green stocks, green bonds, ESG funds and green stock indexes.

Regarding investors, the Government encourages the development of long-term investment funds for infrastructure, real estate, creative startups and green projects. At the same time, the operator will create conditions for individual investors to participate in the market through professional investment institutions.

For foreign investors, procedures for opening accounts, converting foreign currencies and transferring profits abroad will continue to be simplified, in parallel with improving market access.

In the banking sector, Vietnam aims to form a number of banks with scale and competitiveness in the region. Large banks are encouraged to early apply safety ratios approaching Basel III standards, speed up bad debt handling, limit cross-ownership and strongly shift to a risk-based supervision model.

The remaining solution groups focus on modernizing payment infrastructure, strengthening market supervision, promoting stock market upgrades, developing an International Financial Centre and training high-quality human resources in areas such as artificial intelligence (AI), big data, cybersecurity and risk management.

---

Source: TheLeader — theleader.vn. The article is reposted for the purpose of sharing knowledge for the founder and investor community in the ecosystem HCM VIF.