Positive signals
Nearly 4 months after the workshop organized by Lao Dong Newspaper in coordination with the Ministry of Finance and the State Bank on March 12, some recommendations on medium and long-term capital have been responded to by policies, opening up more directions for long-term capital, international capital and green capital.
FTSE Russell's confirmation of upgrading Vietnamese stocks, expected to take effect from September 21, 2026, opens up more wide access to international investment funds, while promoting improvement of trading infrastructure, information disclosure and corporate governance.
Another new point is that the domestic carbon exchange operates from June 29, with 6 securities companies participating initially and more than 100 emission facilities allocated quotas.
The carbon floor does not directly lend medium and long-term capital, but creates an emission valuation mechanism, helping businesses commercialize emission reduction results. This is the basis for green projects to access green credit, green bonds and long-term investors.
For corporate bonds, the Government has issued Decree 200/2026/ND-CP to facilitate issuance, while increasing transparency, supervision and responsibility of participating parties.
These movements show that proposals to expand the capital market, increase transparency and seek green capital sources have been responded to with some specific institutional steps.
Previously, at the conference on March 12, many experts said that the demand for medium and long-term capital is increasing, while the economy is still heavily dependent on bank credit.
Dr. Nguyen Quoc Viet - lecturer at the University of Economics, Vietnam National University, Hanoi - also said at that time that it was necessary to gradually change the structure of capital sources, reduce dependence on bank credit and develop the bond and stock market more strongly.
Opening more doors does not necessarily mean capital is already flowing strongly
Upgrading securities helps Vietnam gain more attention in the portfolios of international funds. However, capital inflows also depend on stock quality, free transfer ratio, foreign ownership limits, exchange rate risk prevention and information disclosure.
Vietnam also needs to develop institutional investors, pension funds, insurance, long-term funds; and at the same time improve market infrastructure and investor protection mechanisms.
Similarly, having a carbon exchange can solve part of the market infrastructure. To make carbon credits a source of income that can support finance for the project, a reliable emission measurement, reporting and appraisal system is needed, the number of participating businesses is large enough, and transactions are liquid.
For corporate bonds, the legal framework is a necessary condition, but investor confidence also depends on the quality of the issuing organization, credit rating, purpose of capital use and ability to generate cash flow to repay debts.
In the first six months of the year, GDP increased by 8.18%, accumulated assets increased by 15.2%, showing that investment is an important driving force. However, investment capital from the state budget reached about 335.600 billion VND, slower than the same period.
Focus on long-term investors and qualified projects
After upgrading, Vietnam has the opportunity to access more international funds. However, for the capital market to develop sustainably, it is still necessary to expand the domestic institutional investor force such as investment funds, insurance companies and pension funds.
In the opposite direction, investors also need qualified businesses and projects to pour capital. This requires transparent information, bonds with clear credit quality and projects with the ability to generate cash flow. With the carbon market, the new trading floor is the first step; financial support for green projects depends on credit quality, verification mechanisms and liquidity.
Another solution is to increase inter-connectivity between bank credit and the capital market. At the March conference, Mr. Nguyen Ba Hung - Chief Economist of the Asian Development Bank in Vietnam - proposed that banks finance projects during the construction phase; when the project generates revenue, businesses issue long-term bonds to repay loans, thereby freeing up bank capital for new projects.
