Việt Nam had 43 fund management companies and 141 securities investment funds at the end of June. — VNA/VNS Photo

HÀ NỘI — The upgrade of Việt Nam’s stock market, effective from September 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 Vũ Thị Chân Phương 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.

Việt Nam 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 VNĐ846 trillion (US$32.5 billion), according to the SSC.

Assets under management have increased by more than 20 per cent a year on average over the past decade. Open-ended funds and exchange traded funds have expanded steadily and now account for about 80 per cent of total net asset value.

But the growth in assets has not been matched by a comparable shift in the industry's structure, said Nguyễn Hữu Hiếu, chief executive of FiinGroup.

Assets under management are equivalent to about 6.2 per cent of gross domestic product (GDP), largely unchanged since 2023.

There is thus room for development in establishing more funds, expanding the role of securities investment funds and diversifying sources of assets under management, asset classes and investment products, he said.

Need for structural shift

Chairwoman of the State Securities Commission Vũ Thị Chân Phương speaking at the 2026 Vietnam Fund Awards. — Photo daibieunhandan.vn

The fund industry is entering a period of structural change driven by product innovation, opportunities from international capital following the market upgrade and efforts to broaden the investor base through digitalisation and more professional investment management, Hiếu said.

Việt Nam's development strategy for the fund industry through 2030 sets a target for securities investment funds' net asset value to reach 5 per cent of GDP.

FiinGroup estimates that achieving the target would require managed assets to increase to around VNĐ1 quadrillion.

According to Hiếu, digital infrastructure will be important to achieving that goal, although fund managers will need to shift towards data-driven operating models.

AI could shorten the time needed to turn data into investment decisions by up to 50 per cent, but its controlled deployment would be essential to maintaining market confidence, he added.

Chief executive of Vietcombank Fund Management Nguyễn Thị Hằng Nga said greater attention should be paid to enhancing awareness and trust for the fund industry to attract more investment. Tax incentives could also encourage households to make regular, long-term investments in fund certificates.

She pointed out that Việt Nam has about 13 million securities accounts, but only just over 700,000 investors participate in open-ended funds.

Nguyễn Nghĩa Tuấn, deputy chief executive of SSI Asset Management, said that household savings remain concentrated in bank deposits and real estate, while investment through funds is still at an early stage.

Developing simple and accessible products would help expand the investor base, he said.

Bùi Văn Huy, chief executive of FIDT Investment Consulting and Asset Management, said improving financial literacy is another prerequisite for directing long-term household savings into funds.

Phương said SSC would review regulations governing fund management companies, investment funds, distribution agents and service providers to facilitate the development of a wider range of funds and investment products.

Innovation will need to go hand in hand with risk management, transparency, safety and protection of investors' legitimate rights, she noted.  

At the event, 44 awards were presented across 11 categories covering investment performance and the development of ETF, ESG, voluntary pension and open-ended fund products, based on the evaluation of 100 eligible securities investment funds. — BIZHUB/VNS