Turning point of Vietnam's fund management industry: exec

Vietnam’s asset management industry is entering a pivotal phase as the country seeks to diversify capital flows and strengthen long-term funding, said Lu Hui Hung, CEO of Phu Hung Fund Management, citing the Ministry of Finance's recently issued Decision 3168.

Decision 3168, dated September 12, 2025, approved the Project on Restructuring Investors and Developing the Securities Investment Fund Industry. It is not just a policy, but more like a blueprint for changing the way capital is mobilized and managed in the economy, according to the executive.

Vietnamese investors had 11.3 million securities accounts as of end-October, equivalent to about 11.3% of the population and surpassing the national target of 11 million accounts well ahead of the 2030 deadline, according to the Vietnam Securities Depository and Clearing Corporation.

Individual investors accounted for 99% of total accounts, including about 310,000 new accounts opened in October, the highest monthly increase in a year.

Speaking on the Finance Street talk show, CEO Lu Hui Hung said Vietnam’s stock market has expanded rapidly but remains dominated by retail investors, who contribute 80-85% of trading value. This reflects strong interest but also adds volatility and limits the formation of long-term capital, he said.

In more developed markets, pension funds, insurers, and professional investment funds play a much larger role, providing stability, discipline, and long-term capital flows. Currently, there are more than 100 funds operating nationwide, with strong growth in open-end funds. Vietnam’s managed assets currently stand at around 6% of GDP, far below China’s 19% and Malaysia’s more than 50%, Lu said.

Decision 3168 outlines priorities such as diversifying fund products, improving market infrastructure, and widening distribution channels, measures he said will help shift household savings into professionally managed investments and support market liquidity.

Lu said strengthening the role of institutional investors will help Vietnam attract longer-term domestic and foreign capital, aligning with the country’s ambitions to upgrade its market status.

He added that the fund management sector should draw on the experience of markets like South Korea and Taiwan, where ETF markets have grown rapidly. Taiwan’s ETF market expanded 32-fold over a decade due to strong index ecosystems and broad access for retail investors.

Vietnam, he said, should expand thematic and bond ETFs, infrastructure funds, and money-market funds to attract insurers and pension funds earlier.

“If Vietnam can combine international experience with innovation according to Vietnamese characteristics under the policy direction set by Decision 3168, the fund management industry will become a key driver of long-term and sustainable capital for the stock market,” he said.