Clearly defining the role of capital channels
Capital demand for the economy in the 2026-2030 period is up to more than 38 million billion VND, placing high expectations on the stock market in mobilizing medium and long-term capital. The problem posed is to unlock and allocate capital flows effectively.
According to Mr. Dang Thanh Tam - Chairman of Kinh Bac Urban Development Corporation (KBC), unblocking capital flows for the economy is not only about expanding capital supply, but more importantly, restructuring capital channeling methods, improving business quality and strengthening investor confidence.
Mr. Dang Thanh Tam said that an important principle is to clearly define the role between capital channels. In which, banks should focus on short-term capital, supplement working capital and prioritize small and medium-sized enterprises. For large enterprises, capital sources should be mobilized through issuing bonds, shares and working with large investment funds. However, for this model to truly operate effectively, the prerequisite is to continue to improve the institution.
Never before have Vietnam's policies and institutions been as good as today. This is not only my personal opinion, but even many international organizations that previously had strict assessments of Vietnam have now also recorded many positive changes" - KBC Chairman said.
Besides perfecting institutions, the quality of goods in the capital market is an important factor to attract long-term cash flow. Vietnam needs more quality and transparent businesses, and at the same time promote equitization to increase supply for the stock market.
Listed companies must improve management quality and operate more efficiently. When the market has many good and transparent businesses, investors will have more confidence to participate," Mr. Tam emphasized.
According to the Chairman of KBC, Vietnam also has the opportunity to attract high-quality FDI, focusing on technology, green growth, innovation and creating greater added value.
Increasing the localization rate of FDI enterprises will promote the domestic enterprise ecosystem, while the Net Zero 2050 commitment opens up more opportunities to access global green capital.
He expects a transparent mechanism, transparent management and sustainable growth goals to create positive changes for the Vietnamese capital market.
Proposal to deploy NVDR, diversify investment products
To increase the ability to attract international capital flows through the stock market, Mr. Nguyen The Minh - Director of Investment Banking Division, Member of the Board of Directors of An Binh Securities Joint Stock Company (ABS) - said that along with the process of upgrading the Vietnamese stock market to the secondary emerging market group according to FTSE Russell classification, it is necessary to continue to improve the criteria to aim for MSCI's upgrade, including requirements for foreign ownership ratio and freely transferable stock ratio.
One of the solutions proposed by Mr. Minh is to soon implement non-voting custody certificates (NVDRs). Although the regulations on NVDRs have been included in the law, there is still no specific implementation model. In Thailand, the transaction value through NVDRs currently accounts for about 21% of the average liquidity of the entire market.
According to Mr. Minh, the deployment of NVDR is expected to contribute to removing foreign ownership limits and improving market liquidity.
In addition, it is necessary to diversify investment products to expand the ability to attract international capital flows. Through his experience working with Taiwanese (China) investors, Mr. Minh assessed that ETFs (ETF exchange-traded funds) are one of the products that many foreign investors prioritize when investing in Vietnam.
Mr. Minh also proposed improving the quality and transparency of listed companies by building a system to assess investor relations (IR Rating) activities in a quantitative direction, similar to the model in Taiwan (China) and Thailand. At the same time, fund management companies can be expanded mechanisms to proactively build their own index sets, develop ETF products instead of mainly relying on the index of the exchange as at present.
Diversifying specialized index sets and ETFs will contribute to enhancing the attractiveness of the stock market, thereby supporting the capital market to better perform its role in mobilizing and allocating resources to the economy," Mr. Minh emphasized.
