In 2024, Vietnam made significant strides in developing more diverse and robust capital markets, with the aim to boost economic growth to 8% by 2025 and achieve double-digit growth from 2026 to 2030.
Prime Minister Pham Minh Chinh emphasized the need for efficient capital mobilization to support this growth. Historically reliant on short-term bank financing, Vietnamese businesses face limited capital market access and sparse long-term financial instruments.
Vietnam’s capital markets, smaller compared to regional peers, showed progress through initiatives such as upgrading the stock market, leveraging sovereign debt for infrastructure, and imposing stricter corporate bond market regulations post-crackdown on corrupt real estate tycoons. These steps aim to enhance investor confidence and transparency.
For stock markets, Vietnam is vying for inclusion in emerging-market indices like FTSE or MSCI by 2025, potentially drawing up to $25 billion in foreign investments by 2030. Despite net foreign investor selling due to geopolitical tensions and a weaker dong, the VN-Index rose by 12% in 2024, propelled by domestic investors. New amendments to the Securities Law and IT upgrades are planned for 2025 to improve market transparency.
In the corporate bond market, Vietnam has seen a 60% rise in bond issuance in 2024, marking a recovery from previous slowdowns. Recent legal amendments support this growth by enhancing transparency and allowing foreign participation, provided they meet professional investor criteria. Meanwhile, the government bond market serves as a critical fundraising avenue, crucial for major infrastructure projects, though it faces challenges like low yields and limited investor diversity.
Vietnam is also setting up a trial carbon credit market between 2025 and 2028, targeting a nationwide launch by 2029. Additionally, authorities are working to establish a legal framework for virtual assets by May 2025, amid growing cryptocurrency ownership in the country. Despite being unregulated, Vietnam ranks high in global crypto adoption, with unresolved regulatory issues prompting entrepreneurs to operate abroad while utilizing domestic resources.
Overall, these developments reflect Vietnam’s commitment to strengthening its capital markets as a lever for sustained economic growth. However, they highlight the necessity of regulatory clarity, infrastructure upgrades, and strategic investor engagement to fully realize this potential.
