Dragon Capital CEO proposes two-pronged strategy to boost Vietnam’s capital market

Le Anh Tuan, CEO of Dragon Capital VietFund Management JSC (DCVFM), has proposed two key policies to unlock domestic capital and attract foreign funds towards a more sustainable capital market.

The two “breakthrough measures” involve personal income tax incentives for long-term investments and lifting foreign ownership limits in listed companies, Tuan told the Vietnam Business Forum (VBF) themed "Businesses Partnering with the Government for a Green Transition in the Digital Era", organized in Hanoi on Monday.

He said tax policy is the most powerful tool to encourage long-term investing. He proposed allowing personal income tax deductions for long-term investments in securities investment funds legally established in Vietnam.

“After 25 years of development, Vietnam’s stock market has delivered average returns of nearly 13% a year, and professional funds above 15%, proving it’s a sustainable and efficient wealth-building channel,” he said.

Tuan added that such tax incentives would help mobilize idle capital, prepare for an ageing population, and reduce dependence on bank lending, which keeps funding costs high.

He also called for wider foreign ownership room, arguing that while having the stock market classification (from "frontier" to "secondary emerging") is necessary, it is not sufficient to draw global capital back.

Foreign investors have withdrawn nearly $10 billion from Vietnam over 2024-2025, equivalent to around 12-13% of foreign reserves, Tuan stressed, warning that the issue has become a macroeconomic challenge affecting liquidity and exchange rate stability.

This group currently holds about 14% of listed Vietnamese stocks, compared with 20-40% in Indonesia, Malaysia, the Philippines and South Korea. Tuan said increasing the ratio to 20-25% could boost Vietnam’s foreign reserves by $15-30 billion.

He proposed allowing up to 100% foreign ownership in most sectors, except those related to national security. “This would attract major institutional investors, improve liquidity and transparency, and support macroeconomic stability.”

Tuan added that the two measures - encouraging domestic savings and attracting international capital - should move in parallel to strengthen Vietnam’s financial resilience and help the country advance toward its goal of becoming a high-income economy by 2045.