Vietnam stock market eyes fourfold surge in foreign investor accounts by 2030
To meet the 2030 target, the securities sector will need to attract more than 150,000 new foreign accounts within the next five years.
THE HANOI TIMES — The Ministry of Finance expects to raise the number of foreign investor securities accounts in Vietnam to 200,000 by 2030, four times the current figure.
Local investors at a securities firm in Hanoi. Photo: Duc Manh/The Hanoi Times
After 2030, the number of foreign accounts is expected to grow by 15% each year.
These targets are part of a plan on investor and fund management development approved by the ministry on September 12.
The number of foreign accounts had increased steadily to 49,000 as of the end of August from about 35,000 in early 2021.
Under the plan, key measures to draw in more overseas investors include simplified administrative procedures, shortened account-opening times and the introduction of a central counterparty clearing (CCP) mechanism for underlying securities.
The finance ministry will also review and expand foreign ownership limits in non-essential sectors that do not affect national security.
Diversification of market products is another important task in the next five years. During this time, the ministry encourages public share offerings, IPOs and listings of domestic large-cap enterprises and foreign-invested companies.
The Ministry of Finance also encourages domestic individuals to invest through professional funds, thereby enhancing efficiency, stability and market depth.
Under the plan, the ministry expects to raise the number of investors holding fund certificates to 2.5 million in 2030 and to five million in 2035. The number of securities investment funds is expected to hit 500 by 2030 and grow by 25% annually thereafter.
In the next five years, the total net asset value of investment funds is targeted at 5% of GDP. The proportion is projected to reach double-digit number within the following decade.
By 2030, trading liquidity conducted by individual investors will account for 70% of market's total. The remaining 30% will be split between domestic institutions and foreign investors.
According to Chairwoman of the State Securities Commission of Vietnam Vu Thi Chan Phuong, the restructuring plan aims to strengthen market stability and depth and provide training for new, less experienced investors.
Deputy Minister of Finance Nguyen Duc Chi said that individual investors should make a change in their mindset from “playing the stock market” to “investing in the stock market.”
These investors need to entrust their capital to professional fund managers on the basis of balanced returns and shared risks, he said.
