Vietnam comprehensively reforms its financial market

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

Accordingly, Vietnam aims to synchronously develop the entire financial market, including banking, securities, insurance, capital markets and new financial products. Specifically, by 2045, the financial market will operate according to market principles, with a system of institutions, infrastructure, products, investors and an international standard monitoring mechanism.

In particular, the stock market is expected to become the main medium and long-term capital mobilization channel for the economy. The banking system develops safely, modernly, and insurance develops sustainably. Vietnam International Financial Center gradually becomes a focal point connecting capital flows in the region.

One of the focuses of reform is to develop a public and transparent capital and securities market, increase the scale and depth, and effectively mobilize medium and long-term capital for businesses and the economy. The operator aims to increase capital mobilization efficiency through issuing stocks and bonds, improving the capacity of securities companies and intermediary financial institutions.

The investor structure will also be adjusted to increase the role of organizations such as investment funds, pension funds and insurance companies, instead of relying heavily 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 securities investment funds reached 5% of GDP. The asset size of pension funds increases by an average of 11.5% per year in the period 2026-2030.

In parallel with capital market development, the banking system will continue to be modernized in the direction of developing digital banking, expanding comprehensive finance, improving credit quality and ensuring system safety.

Regarding infrastructure, Vietnam aims to complete the connection of the payment system with regional and international partners by 2028 at the latest. The operator will deploy the central clearing partner (CCP) mechanism on the underlying stock market in 2027 and build a shared database to serve the management and supervision of the financial market in the period 2030-2035.

New products and markets will also be put into operation along with breakthrough mechanisms to increase the scale and liquidity of the capital market.

To achieve the above goals, the Government proposed 8 groups of solutions.

Regarding institutions, Vietnam 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.

In the product group, Vietnam will gradually develop the crypto asset market, in addition to stocks, bonds, derivatives, currency – credit and insurance. The green capital market is also promoted through 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, along with improving market access.

In the banking sector, Vietnam aims to form a number of banks with scale and competitiveness in the region. Vietnam also encourages large banks to apply safety ratios early, 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, increasing market supervision, upgrading the stock market, developing the International Financial Center and training high-quality human resources in fields such as AI, big data, cybersecurity and risk management.