Don Lam, CEO and founding partner of VinaCapital. Photo courtesy of VinaCapital

Don Lam, CEO and founding partner of VinaCapital, spoke to Việt Nam News after receiving the 11th ASEAN Entrepreneurs Award at the World Knowledge Forum 2026 in Seoul. He discusses Việt Nam’s stock market upgrade, the reforms needed to retain global institutional investors and the role of long-term capital in helping domestic companies become regional leaders.

FTSE Russell has confirmed that Việt Nam will be reclassified from frontier to secondary emerging market status from September 21. From an investor’s perspective, how significant is this change, and what could it mean for international capital flows into Việt Nam?

This is a significant milestone for Việt Nam’s capital market, reflecting years of progress in accessibility, regulatory standards, trading infrastructure and transparency. More importantly, it is validation from the international investment community of the reforms Việt Nam has undertaken in recent years.

From an investor’s perspective, the biggest impact may not be immediate capital inflows, but the broadening of Việt Nam’s investor base. As a secondary emerging market, Việt Nam becomes investable for a much larger pool of global institutional investors and funds that previously could not or would not invest in frontier markets. This will raise Việt Nam’s profile in global asset allocation and strengthen its position in international capital markets.

Additional inflows, both passive and active, are likely over time. But the longer-term opportunity is to attract a more diverse and stable investor base. This can deepen liquidity, strengthen market resilience and support more efficient valuations for high-quality Vietnamese companies. Ultimately, we see the upgrade not as an end destination, but as a new starting point for the continued development of Việt Nam’s capital market.

An upgrade in market classification can attract attention and passive capital, but keeping investors for the long term is a different challenge. What does Việt Nam still need to improve to become a more attractive market for global institutional investors?

The upgrade is an important milestone, but the real challenge is turning greater international interest into sustained, long-term institutional investment. For that, Việt Nam needs to keep improving the factors that make a market that is not only accessible but investable over the long term.

First is predictability. Global institutions need confidence in transparency, disclosure, investor protection and consistent policy implementation. A clear and stable regulatory framework is essential for long-term capital.

Second, Việt Nam needs greater market depth and liquidity. This means a broader pool of high-quality listed companies, more diversified investment products and stronger domestic institutional participation. A deeper market gives global investors more opportunities to allocate capital at scale and stay invested through market cycles.

Finally, Việt Nam needs more companies that meet global standards of governance, transparency and sustainable growth. Ultimately, institutional investors are looking for businesses they can invest in for the long term, not simply a market they can enter.

The FTSE Russell upgrade opens the door. The next step is to make Việt Nam a market where global institutions want to stay.

After more than three decades working in Việt Nam, what makes you most optimistic about the country’s next stage of development?

Việt Nam is entering a new stage of development, one increasingly driven by productivity, technology, innovation and a stronger private sector.

The country has built a solid foundation: macroeconomic stability, a resilient manufacturing base, rising domestic consumption and deepening integration with the global economy. At the same time, regulatory reforms are improving transparency and predictability, while greater policy emphasis on science, technology, innovation and private sector development is creating new engines of growth.

Việt Nam’s stock market upgrade and the development of the Việt Nam International Financial Centre are also important signals of the country’s ambition to deepen its capital markets and strengthen its financial infrastructure.

Together with continued investment in infrastructure and a strong network of free trade agreements, these developments point to a more productivity- and innovation-led growth model. That, in my view, creates a strong foundation for sustainable growth and long-term investment.

Việt Nam has a rapidly expanding private sector, but many domestic companies still struggle to access long-term capital. What needs to change to help Vietnamese businesses scale up and compete regionally?

To help Vietnamese businesses scale up and compete regionally, businesses need better access to long-term equity capital, while also becoming more investment ready. Heavy reliance on bank financing, particularly short-term funding, can limit their ability to invest and grow over the long term. A deeper equity market and stronger institutional investor base would provide more flexible and sustainable sources of capital.

At the same time, stronger governance, greater financial transparency, professional management and a clear long-term strategy are essential for companies to attract institutional capital and compete at scale. Việt Nam also needs more consolidation and M&As to help businesses build scale, strengthen capabilities and gain access to technology and regional markets.

This is where investment funds can play an important role. For more than two decades, VinaCapital has provided long-term capital to Vietnamese businesses while working alongside them to strengthen governance, improve operations, pursue growth opportunities and connect with international partners.

Ultimately, helping Vietnamese businesses scale is about more than raising capital. It is about building companies with the scale, capabilities and governance to compete effectively and become regional leaders.

As this year’s ASEAN Entrepreneurs Award recipient, what do you think still needs to change within ASEAN to make it easier for home-grown companies to scale across borders and become truly regional businesses?

ASEAN's diversity is both a strength and a challenge. Each market has its own regulations, business culture and consumer preferences, so companies cannot simply replicate a successful model from one country to another. To build truly regional businesses, entrepreneurs need the time, capital and flexibility to adapt their strategy to each local market. VNS