Vietnam's fund management market must be transparent, sustainable to allure investors: experts
To spur the growth of Vietnam’s fund management industry, an open, transparent and fair playing field is needed for all participants, experts said at a seminar hosted by The Investor on Thursday.
The seminar in Hanoi, themed “Raising investor awareness towards stock market status upgrade”, was in line with the country's effort to get its stock market status lifted from "frontier" to "emerging".
Opening doors to international investment funds
Looking back at the development of Vietnam’s stock market in particular and its broader financial market, there has been progress, yet it still falls short of expectations, said Do Ngoc Quynh, secretary general of the Vietnam Bond Market Association.
"Government bonds began listing in 2009. While the capital market has grown overall, the fund management industry appears to have lagged behind, and the financial system remains heavily bank-dependent," he told the seminar.
The country’s fund management industry is still in its infancy, with assets under management accounting for just around 6% of GDP, or roughly $26 billion.
Given this, he stressed the need to foster an open, transparent and fair playing field. This allows capable players to compete fairly with the less capable to be eliminated, thereby improving the overall quality of the industry.

Do Ngoc Quynh, secretary general of the Vietnam Bond Market Association. Photo by The Investor.
“The foundation of the fund management market lies in licensed fund management companies that offer high-quality investment products. Investors ultimately seek profits, so the more effective and profitable a product is, the more attractive it becomes. It’s important to emphasize that profits and performance go hand-in-hand with risk appetite,” he noted.
The expert pointed out that one major hurdle for Vietnam’s financial market is the limited financial literacy among retail investors.
“Most Vietnamese investors haven’t been trained in personal investment,” he explained. “Driven by greed, they tend to chase high-return channels without fully understanding the risks.”
He also emphasized investor confidence as another important factor in building a sustainable financial market. This comes from transparency, fairness and strictness in the legal system, and professionalism in the implementation by regulators and market participants.
“Once investors lose trust, it’s hard to win them back,” Quynh said.
He noted that Vietnam currently has more than 40 fund management companies, but only a handful actually offer fund products, and even those firms provide limited product options for investors.
“Interest from international investors is rising. But licensing hurdles are high, leaving acquisitions as their main entry route,” Quynh highlighted.
Therefore, he suggested opening the door to them with a focus on creating effective products, improving transparency, and enhancing investor trust.
Sharing Quynh’s views, Nguyen Hang Nga, general director of Vietcombank Fund Management Company Limited (VCBF), a joint venture between state-controlled Vietcombank and Franklin Templeton Investments (FTI), said only quality products can earn investor trust.

Nguyen Hang Nga, general director of Vietcombank Fund Management Company Limited. Photo by The Investor.
At VCBF, its first fund was launched in August 2014, and the fund's performance has "multiplied" since then.
Nga shared that when compared with VN30, which tracks the 30 largest caps on the Ho Chi Minh Stock Exchange (HoSE), the fund has delivered significantly higher returns, and long-term investors have reaped strong gains.
According to the VCBF executive, investors always seek the highest possible returns, but those often come with higher risks.
“Improving investor awareness is critical - we need to promote long-term thinking, not just over one year, but over five to 10 years,” Nga said. “When comparing self-directed investing with investing through a fund, the evaluation should be based on long-term performance. Investors should ask themselves whether they’ve truly outperformed the fund over that period.”
Fund managers have the time, experience, and expertise - and they’re likely to deliver better results, she further explained.
Allowing banks to directly distribute fund certificates
For the industry to truly play its role, synchronous and breakthrough solutions are needed, Nga said.
"Investment funds need to be recognized as an important capital channel for the economy, helping to reduce capital pressure on the banking system. It is also necessary to allow banks to provide asset management services and officially distribute fund certificates," she told the seminar.
There needs to be solutions to increase the quantity and quality of goods in the capital market, a prerequisite for funds to have attractive profits, creating long-term confidence for investors, she added.
Another solution is increasing investor confidence - from transparency to practical efficiency. “Last but not least is the tax incentive policy to encourage investors to invest long-term.”
According to Nguyen Cong Minh, head of the department for supervision of fund management companies and securities investment funds under the State Securities Commission (SSC), Vietnam’s fund management industry has developed only over the past decade.
When building the legal framework for the sector, the guiding principle was alignment with international practices - from the multi-tiered supervisory model to product design and portfolio limits, he said.
Minh stressed that at that time, the SSC – the country’s stock market watchdog - adopted a cautious approach to ensure compliance with global standards.

The Investor and its Vietnamese-language sister Nhadautu.vn hold a seminar titled “Raising investor awareness towards stock market status upgrade” in Hanoi on July 17, 2025. Photo by The Investor.
The fund management industry now comprises 125 funds, with total assets under management of around VND765 trillion ($29.24 billion) and a net asset value (NAV) of about VND94 trillion ($3.59 billion).
Exchange traded funds (ETFs) and open-ended funds account for over 80% of the industry’s total assets - flexible investment vehicles known for their safety and transparency.
“We’re in the final stages of drafting a proposal to restructure the investor base, which will soon be submitted to the Ministry of Finance,” Minh said. “The plan includes several key elements, such as establishing a legal framework to ease portfolio and investment limit constraints for funds. It also calls for the design of new fund types and investment indices.”
He added that the proposal also aims to strengthen the capacity of fund management firms. “There are currently 43 licensed fund managers, but only a small number are actively investing and running efficient portfolios,” he noted.
Regarding the diversification of distribution channels, Minh emphasized that the proposal to allow banks to directly distribute fund certificates is not new. The SSC will study the matter and make recommendations to the central bank.
The proposal also takes tax matters into account. “We’ve held discussions with fund management companies regarding tax policies for the industry, including those for fund managers and investors.”
“At the same time, we’re balancing these considerations with the need to mobilize resources for the state budget. Further research and appropriate recommendations will follow.”
Minh noted that a key component of the proposal is improving investor awareness. Since the inception of the stock market, the SSC has operated a securities training center and issued professional licenses. However, he said, investor education shouldn’t be the sole responsibility of regulators - it requires coordinated efforts from regulatory bodies, market operators, and market participants alike.
“Over the past decade, the fund management industry has delivered fairly stable returns, averaging around 13%,” Minh said. “That said, its growth is closely tied to the broader economy and the stock market. Looking ahead, there will be plenty of opportunities for the sector to expand.”
The Vietnamese financial market is entering a pivotal stage with expectations of status upgrade (from "frontier" to "emerging"), institutional reform, and comprehensive digitalization.
In a resolution passed on June 27, 2025, the National Assembly, Vietnam's legislature, requested the development of capital market mobilization channels. Specifically, all preparations must be completed in 2025 to get the market status upgraded.
Upgrading the market status is a key priority assigned by the Government to the Ministry of Finance. Under the ministry’s direction, the State Securities Commission (SSC) and relevant agencies have actively worked to improve the legal framework, upgrade technological infrastructure, and improve market operation conditions to meet the stringent standards set by international rating organizations.
Alongside efforts to upgrade the market status, improving investor awareness is a critical focus of regulators to foster the sustainable development of Vietnam’s stock market.
Under the Prime Minister’s Decision No. 1726/QĐ-TTg dated December 29, 2023, which approved the Stock Market Development Strategy until 2030, the Government requests diversifying the investor base and improving the quality of investment demand to ensure sustainability.
This includes enhancing the capabilities of individual investors through training and financial education. A comprehensive investor training strategy is to be developed, identifying objectives, target groups, and phased implementation according to market development stages.
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