SSC pushes for greater FIE participation in Vietnam's stock market

Hoang Van Thu, vice chairman of SSC. Photo: SSI

At a seminar on the listing roadmap for foreign-invested enterprises (FIEs) in Vietnam on September 17, Hoang Van Thu, vice chairman of the State Securities Commission (SSC), outlined the authority's direction for improving capital market quality, highlighting policies to encourage greater FIE participation that would broaden the market's capacity to attract both domestic and foreign investment flows.

He said that as Vietnam sets ambitious growth targets, the economy will require substantial resources for development investment in the coming years. According to the Ministry of Finance (MoF), total social investment capital during 2026–2030 is expected to reach around VND38.5 quadrillion ($1.5 trillion), averaging VND7.7 quadrillion ($301 billion) per year, more than double the amount recorded during 2021–2025.

"Such a large capital requirement means the capital market should go beyond its role as a funding channel and develop into a modern ecosystem capable of effectively mobilising and allocating social resources, strengthening economic resilience, and laying the foundation for long-term growth," he said.

Under this direction, the stock market will continue to be developed towards greater openness and transparency, while expanding its scale and depth and improving its effectiveness in mobilising medium- and long-term capital for businesses and the economy.

"Expanding the participation of FIEs is also part of the broader effort to mobilise resources from the private sector, the foreign-invested sector and international financial institutions for national development," added Thu.

According to the MoF, in 2025, total newly registered, adjusted, and contributed capital, together with capital raised through share and capital contribution purchases, exceeded $38.4 billion. Disbursed foreign direct investment (FDI) reached more than $27.6 billion, up 9 per cent from 2024.

By the end of August, total registered FDI had reached $40.63 billion, up 55.4 per cent on year. Disbursed capital stood at $17.25 billion, up 12 per cent, the highest level recorded for the same period in five years. Newly registered capital surged 96.8 per cent, while the value of capital contributions and share purchases rose 50.1 per cent.

"These figures highlight the continued importance of foreign investment to economic development. However, despite the growing scale of funding from abroad, the presence of FIEs on Vietnam’s stock market remains relatively limited," explained Thu.

Since Vietnam’s stock market began operating, only 11 FIEs have converted their operations to list or register for trading, mainly between 2003 and 2017, according to the SSC. Four of these companies have subsequently left the market after suffering business losses.

“The number of FIEs currently listed or registered for trading on Vietnam’s stock market is quite small, with only around 10 firms out of more than 1,600,” Thu said.

The scale of FIEs also remains modest. By the end of 2025, the combined charter capital of the 10 companies was around VND12 trillion ($470 million), while their total assets stood at approximately VND44 trillion ($1.7 billion), equivalent to only about 0.15 per cent of the entire market.

“This is a fairly modest figure,” Thu said, expressing his expectation that, alongside changes to policies, the domestic stock market would attract more FIEs in the coming period.

"The current approach is to facilitate access to the capital and stock markets for FIEs on the same basis as domestic enterprises," he explained. "The foreign-invested economy is regarded as an important component of the national economy and is encouraged to develop over the long term, with equal treatment alongside other economic sectors in accordance with the law."

Alongside efforts to attract FIEs, the legal framework for the stock market is being further improved to enhance market access, simplify procedures and reduce costs for businesses and investors.

In September 2025, the government issued Decree No.245/2025/ND-CP amending and supplementing a number of provisions of Decree No.155/2020/ND-CP. The new regulations helped strengthen the legal framework, simplify administrative procedures, link initial public offerings with listing, improve rules on foreign ownership limits and corporate governance, and gradually align regulations with international standards and practices.

The MoF issued Circular No.08/2026/TT-BTC last February, amending and supplementing several circulars governing the securities sector. Under the new rules, foreign investors can place trading orders through global brokerage firms without having to open trading accounts at domestic securities companies. The provision reduces procedures, time, and costs, particularly for large investment funds working with global brokerage organisations.

Another step highlighted by Thu is the continued revision of the Law on Securities this year. "The Law on Securities will continue to be updated and amended in a direction that reduces business conditions and administrative procedures, while improving efficiency and saving costs for businesses," he said.

Going forward, the authorities will continue to improve the institutional framework and investment and business environment, while reviewing and expanding market access for foreign investors in line with an appropriate roadmap, ensuring openness, transparency, and non-discrimination.

They will also continue to refine FDI policies, strengthen corporate governance and information transparency, and encourage foreign capital to be invested on a long-term, stable, and responsible basis.

Thu expects FIEs planning to maintain and expand their manufacturing and business operations in Vietnam over the long term to take a more proactive approach to accessing capital mobilisation tools available on the stock market, including share and bond issuance.

"On the regulator's side, we will continue to strengthen dialogue and work alongside businesses and market participants, creating new advantages for capital mobilisation through the stock market in compliance with the law," Thu said.

Under the Comprehensive Reform Plan for Vietnam's Financial Market, the authorities aim for capital mobilisation through the capital market to average VND2 quadrillion ($78 billion) per year before the end of the decade. The plan aims for foreign investors' holdings in Vietnam's capital and stock markets to reach around 15 per cent of GDP by 2030.

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