At the Roadshow event held in Hanoi on October 16, Mr. Hoàng Nam – Director of Research and Analysis, Vietcap Securities Corporation, stated that Vietnam’s macroeconomic landscape is brimming with positive prospects. To realize its ambitious growth targets, the government has implemented a series of synchronized policies, encompassing both monetary and fiscal measures.
The State Bank of Vietnam is likely to maintain low-interest rates, ensuring affordable capital flows to support the economy. Simultaneously, public investment is being ramped up, with a projected 25% increase compared to the previous year. This surge is expected to create a ripple effect across the business sector, particularly benefiting listed companies.
A significant catalyst has materialized with FTSE’s upgrade of Vietnam’s stock market to emerging market status. This move is anticipated to attract substantial foreign capital, with passive funds contributing approximately $1–2 billion and active funds adding another $5–6 billion. This influx will not only enhance liquidity but also fuel growth opportunities for domestic securities firms.
Additionally, the government has launched a Market Upgrade Plan, aiming to achieve “emerging” status as per MSCI and “advanced emerging” status according to FTSE Russell in the future. This plan includes pivotal reforms, notably the introduction of a Central Counterparty Clearing (CCP) mechanism, slated for operation by 2027. This bold step underscores the government’s commitment to aligning Vietnam’s capital market with international standards.
According to Mr. Nam, the abundance of capital and improved investor confidence will not only support listed companies but also spark a new wave of IPOs. With Resolution 68 identifying the private sector as the primary growth driver, leading enterprises require substantial capital to expand their operations.
A vibrant stock market will serve as a launchpad for large-scale capital-raising initiatives. It is estimated that the total IPO value from companies across various sectors could reach $50 billion, broadening the market’s offerings and fostering robust growth for securities firms in the advisory segment.
However, Mr. Nam noted that Vietnam’s stock market remains relatively modest compared to its potential. In 2024, the market capitalization stood at approximately 56% of GDP, significantly lower than regional peers like Thailand and Malaysia. Even during the recent rally from early 2025, the market capitalization reached only about 70% of GDP, still far from the government’s 2030 target of 120%.
No Shortage of Capital in the Stock Market
Addressing concerns about capital dilution following numerous IPOs, Mr. Nam emphasized that Vietnam’s market upgrade will attract substantial foreign investment. Active capital inflows could surpass those from funds, reaching $5–6 billion. This capital can participate in IPOs or capital increases by listed companies.
The potential for further upgrades, such as to secondary emerging status by FTSE Russell or even MSCI, ensures a continuous flow of new capital. Each upgrade will bring fresh funds, eliminating concerns about capital shortages in the stock market.
Domestically, loose monetary policy has kept bank interest rates low. Approximately 34% of high-income individuals still allocate investments to deposits and cash, presenting ample opportunities to shift towards higher-yield assets like stocks. Long-term, the low percentage of Vietnamese with securities accounts (around 10%) offers significant potential for new capital inflows.
In the short term, existing capital may rotate. Savvy investors will seek opportunities with favorable valuations and high growth potential, making VPBankS a compelling investment option worth considering.
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Vietnam’s Securities Regulator Outlines Market Development Roadmap Post-Upgrade
On October 16, 2025, the State Securities Commission (SSC) of Vietnam, in collaboration with the JICA Project, hosted a conference in Ho Chi Minh City titled “Dissemination of Amendments and Supplements to the Securities Law and Detailed Implementing Regulations” for the Southern region. During the event, a key question emerged regarding the policy direction for market development following FTSE’s upgrade of Vietnam’s market classification.
