Fund approvals should be quickened to capture investment opportunities: exec

Vietnam should streamline the approval process for new investment funds to help asset managers seize attractive investment opportunities, particularly IPOs and private placements, according to the CEO of KIM Vietnam Fund Management Company Limited.

CEO Huynh Tuan Khanh said lengthy licensing procedures increase opportunity costs by delaying funds' ability to deploy capital when attractive deals emerge.

"Time is an opportunity cost in investment. When attractive IPOs or private placements become available, fund managers need investment vehicles ready to participate," he said at the Financial Street talk show broadcast on Vietnam Television.

The executive noted Vietnam's stock market has faced subdued liquidity over the past five months due to relatively high bank deposit rates on the domestic market and strong competition for global capital.

Higher bank deposit rates have made savings more attractive to domestic investors, while overseas investors continue to find compelling opportunities in U.S. technology and artificial intelligence stocks as well as South Korea's semiconductor sector, he said.

Khanh stressed that FTSE Russell's expected upgrade of Vietnam's market status to "secondary rmerging" has largely been priced in by foreign investors since 2025 and is therefore unlikely to trigger an immediate surge in inflows.

Passive funds tracking the FTSE Emerging Markets Index are expected to allocate between 0.02% and 0.35% of assets to Vietnam, equivalent to more than $1 billion, with inflows likely to be phased in over four rebalancing periods between September 2026 and September 2027, he said.

Active foreign funds could bring an additional $3-4 billion, but attracting those inflows will require stronger corporate earnings growth, better disclosure standards and improved market access for overseas investors.

Despite near-term challenges, including global trade tensions, U.S. tariff policies and geopolitical risks in the Middle East, Khanh said foreign investors remain positive on Vietnam's medium- and long-term prospects, citing stable macroeconomic fundamentals, continued foreign direct investment inflows and the government's commitment to sustaining high economic growth.

He also urged listed companies to strengthen corporate governance, improve transparency and enhance disclosure standards to build greater confidence among international investors.