Stock market upgrade creates new challenges


The development of the fund management industry will require broader restructuring of the investor base, improving market quality and the quality of services, SSC chairwoman Vu Thi Chan Phuong said. — VNA/VNS

HANOI: The upgrade of Vietnam’s stock market, effective from Sept 21, is creating new opportunities for the fund management industry while raising demands for stronger products, governance and risk management, the State Securities Commission (SSC) has said.

The development of the fund management industry will require broader restructuring of the investor base, improving market quality and the quality of services, SSC chairwoman Vu Thi Chan Phuong said at the launch of the 2026 Vietnam Fund Awards on Tuesday.

The aim is to strengthen the mobilisation and allocation of medium and long-term capital for the economy as the country seeks rapid and sustainable economic growth while accelerating infrastructure development, science and technology, innovation, digital transformation and the green economy, she noted.

Vietnam had 43 fund management companies and 141 securities investment funds at the end of June, with total assets under management – including discretionary portfolios – of about 846 trillion dong, according to the SSC.

Assets under management have increased by more than 20% a year on average over the past decade.

Open-ended funds and exchange traded funds have expanded steadily and account for about 80% of total net asset value.

But the growth in assets has not been matched by a comparable shift in the industry’s structure, said Nguyen Hu Hiu, chief executive of FiinGroup.

Assets under management are equivalent to about 6.2% of gross domestic product, largely unchanged since 2023. — Viet Nam News/ANN

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