TẠP CHÍ ĐIỆN TỬ
Solutions to boost Vietnam's investment fund industry
The assets under management of securities investment funds remain modest relative to their potential, representing just 6.5% of Vietnam's GDP, compared to 21% in Thailand and 52% in Malaysia.
Vietnam's fund industry still has significant room for expansion, as the total assets under management (AUM) of fund management companies only account for about 6.5% of GDP, significantly lower than in other countries in the region.
This was emphasized by Minister of Finance Nguyen Van Thang at the "Investment Funds and Foreign Investment in Vietnam’s new era of development" conference held on March 28.
A report from the Ministry of Finance stated, "To date, the total value of assets managed by securities investment funds is still modest compared to the potential, accounting for only 6.5% of GDP, while Thailand stands at 21% and Malaysia at 52%."
The number of individual investors in the Vietnamese stock market currently accounts for a large proportion. The majority of this group participates in the market by buying and selling themselves, engaging in short-term speculation rather than investing in professional funds. This situation makes the market unstable, easily affected by herd mentality, and does not ensure long-term investment orientation, according to the report.
The Ministry of Finance stated that it will promote the development of the investment fund system through: (i) diversifying types of investment funds, stock indices, and products suitable for the needs and risk appetite of investors; (ii) diversifying distribution channels, creating motivation for fund management companies to establish new investment funds in the market; (iii) researching and reviewing tax policies for securities investment fund types in accordance with the nature of the investment fund's operations to promote investment through these professional financial institutions.
At the conference, Mr. Thang stated that with the goal of achieving GDP growth of over 8% in 2025, creating momentum for annual double-digit growth in the period 2026-2030, the total social investment capital in 2025 is expected to reach about $174 billion, of which private investment accounts for $96 billion, a sharp increase compared to the $80 billion in 2024.
To achieve this goal, it is essential to mobilize to the maximum and efficient use of financial resources, both domestic and foreign, to support rapid and sustainable growth.
