Vietnam is on the cusp of a historic opportunity to surge ahead and cement its position on the regional financial map. With a roadmap for market advancement, attracting international capital, developing a comprehensive financial ecosystem, and a significant increase in individual investors, LPBank Securities (LPBS) experts believe that the period from 2025 to 2035 will be a crucial turning point, propelling the Vietnamese stock market to new heights.
Market Upgrade: A Catalyst for Unlocking International Capital
Mr. Nguyen Duy Khoa – Chairman of LPBS’s Board of Directors
According to the roadmap, Vietnam’s stock market is expected to be assessed for an upgrade by FTSE and MSCI in September 2025 and 2026, respectively. Upon the upgrade, Vietnamese stocks could account for approximately 1% of the emerging market indices of MSCI and FTSE Russell, presenting an opportunity to attract ETF capital estimated at $5-8 billion. Additionally, active funds could contribute four to five times more capital than ETFs, providing substantial resources for the market.
This is a pivotal opportunity for Vietnam to emerge as a prominent financial hub in the region. Vietnam’s economy is projected to grow at a rate of 8-10%, while the economic structure continues to shift towards high-value-added sectors such as information technology, software, artificial intelligence, semiconductors, financial services, logistics, education, high-end tourism, and modern manufacturing. As a result, the growth potential continues to expand significantly in the coming years.
Currently, the capitalization of Vietnam’s stock market stands at around 60% of GDP, significantly lower than that of emerging markets like India, Thailand, and Malaysia, where capitalization hovers around 100-120% of GDP. This indicates considerable growth potential for the Vietnamese market.
With the economy poised for a breakthrough, GDP growth is expected to be sustained, providing a foundation for the profits of listed companies, which are forecasted to increase by an average of 10-12% annually, creating a robust impetus for market development.
Individual Investors: A Robust Domestic Force for the Capital Market
Mr. Hoang Viet Anh – LPBS Deputy General Director
Vietnam is gradually moving closer to its goal of becoming a high-income economy. According to McKinsey, the total assets of the middle and upper classes in Vietnam could reach approximately $600 billion by 2030, significantly expanding the country’s financial scale and domestic financial capabilities.
In tandem with economic growth, there is a significant shift in the investment preferences of the population from traditional savings to financial investment assets. In just a few years, the number of individual securities accounts has skyrocketed from 2.2 million to over 10 million, reflecting the rapid expansion of individual investors in the stock market, including both stocks and bonds. Nevertheless, financial assets held by individual customers currently account for only about 10-15% of the total deposits in the banking system, significantly lower than the 40% observed in many developed economies, indicating considerable room for growth in the coming decade.
To ensure sustainable development, enhancing individual financial capabilities and disseminating investment knowledge are considered fundamental. According to the National Comprehensive Financial Strategy, by 2030, around 70% of adults will have a solid grasp of basic financial knowledge, enabling them to actively and effectively participate in the capital market.
In line with this trend, LPBS is focused on cultivating a team of specialized financial advisory experts, transitioning from a traditional product distribution model to a role as professional financial advisors, partnering with clients for the long term. Concurrently, LPBS is committed to establishing a training center for investment capabilities and disseminating fundamental financial knowledge to individual investors, contributing to the formation of a robust financial ecosystem that fosters the sustainable development of the capital market in the long run.
Vietnam’s Capital Market 2025-2035: A Driving Force for Long-Term Economic Growth
Ms. Nguyen Thi Nga – LPBS Executive Director of Financial Markets Division
During the period from 2025 to 2035, the capital market is expected to play a pivotal role in mobilizing financial resources to develop the economy’s pillar enterprises. With the anticipated upgrade to emerging market status, Vietnam’s stock market may witness a vibrant IPO wave in the years from 2026 to 2035, with expected capital mobilization exceeding $40 billion. Numerous prominent enterprises in industries such as industry (Thaco), consumer goods (Bach Hoa Xanh, Highlands Coffee), technology (VNPay, VNG), finance (TCBS, VPS), and companies switching to the main exchange (ACV, BSR) are expected to participate, attracting significant domestic and international capital.
In the corporate bond market, after a period of robust restructuring following the high-growth cycle of 2017-2022, the market is witnessing positive recovery signals thanks to an increasingly robust legal framework. The goal is to achieve a market size of 25-30% of GDP by 2035, on par with developed markets in the region, such as Singapore and Malaysia.
However, in the short term, the complex geopolitical landscape and exchange rate pressures remain factors that challenge the ability of Vietnamese enterprises to raise international capital. In this context, businesses need to proactively restructure their capital sources, take advantage of support packages and preferential domestic currency capital sources from macroeconomic policy management, limit short-term foreign currency borrowing, expand equity issuance to domestic and regional strategic shareholders, and strengthen measures to hedge against foreign exchange risks for foreign currency loans, particularly by enhancing financial transparency to bolster investor confidence.
Aligned with this trend, LPBS is committed to enhancing its investment banking capabilities, offering capital raising advisory services, IPO consulting, and M&A solutions, thereby supporting businesses in expanding their operations and contributing to the sustainable development of Vietnam’s capital market in the long term.
Synergizing International and Domestic Capital: Forging a New Era of Development for Vietnam’s Market
The confluence of market upgrade processes, abundant international capital, a robust domestic individual investor base, and supportive policies for the capital market presents a historic opportunity for Vietnam’s stock market. This will serve as a strategic channel for capital allocation, promoting sustainable economic growth, and gradually establishing Vietnam’s position as a leading emerging economy in the region.
With a stable macroeconomic foundation, coherent policy direction, and the combined force of international and domestic capital, Vietnam’s stock market is poised for a significant breakthrough, becoming a vital pillar in the region’s financial architecture in the coming decade.
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“Regarding the concerns raised by the Delegates on the financial matters, Governor Nguyen Thi Hong of the State Bank of Vietnam reassured that the country’s external debt and public debt remain within safe limits. She emphasized that there is still room to attract more foreign capital, thus reducing the domestic economy’s reliance on bank credit as a primary source of funding.”
“Minister of Finance Addresses the ‘Money Available but Not Spent’ Conundrum”
“Lawmakers have raised concerns about citizens’ frustrations regarding inaccessible funds allocated for public investment disbursement. Minister of Finance Nguyen Van Thang has acknowledged the issue and identified several causes, pledging to implement solutions to address this matter promptly.”
“The Vision for a Dynamic Economic Future in Ho Chi Minh City”
On June 17th, the Ho Chi Minh City Institute for Development Studies, in collaboration with the University of Economics Ho Chi Minh City, hosted a scientific workshop titled “A Visionary Master Plan and Economic Drivers for a New Ho Chi Minh City.”
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“On the Vietnam and Its Indices show on June 16th, Mr. Nguyen Viet Duc, the Digital Sales Director of VPBank Securities (VPBankS), offered his insights on the stock market amidst the emerging risks of war in the Middle East and the pivotal stage of the US-Vietnam trade agreement.”
