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Small and limited 20 years ago, the Vietnamese capital market has grown to provide a wide range of products. With favorable prospects, Vietnam must address fundamental challenges to continue evolving and achieve its potential.


The Emerging Asia Pacific Capital Markets: Vietnam

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Overview

Compared with other capital markets around the world, Vietnam’s capital market has a relatively short history of only 20 years. In that time, however, the Vietnamese capital market has transformed—from a small market with limited products and capitalization at 1% of GDP in 2000 into a market with a wide range of stock, bond, and derivative products worth 104% of GDP in June 2020.

The market is attracting more participants locally as well as internationally, drawing a large amount of capital into Vietnam’s economy and contributing significantly to the nation’s growth. If Vietnam can adequately address its challenges—such as institutions, high-quality human resources, financial infrastructure, IT, transparency, and financial product range—its capital market will have many opportunities to grow because of its relatively small size (compared with other Asia-Pacific economies) and the country’s great economic prospects.

This article is from "The Emerging Asia Pacific Capital Markets: Challenges and Opportunities," published by CFA Institute Research Foundation.

About the Authors

Luc Can
Luc Can

Luc Can is chief economist at the Bank for Investment and Development of Vietnam and president of the BIDV Training and Research Institute. He is also a member of the National Fiscal and Monetary Policy Advisory Council and the Vietnam National Committee for Pacific Economic Cooperation. Dr. Luc holds a DBA and an MBA from Monash University, Australia, both under Australian government scholarships. He was also a (Fulbright) Humphrey Fellow and a Senior Fellow at Harvard Kennedy School.

Dinh Dung Nguyen
Dung Nguyen

Dung Nguyen works in the strategic management department at the Bank for Investment and Development of Vietnam. He has published a number of articles on such topics as banking and finance, the effect of globalization on Vietnamese banks, and Vietnam’s corporate governance. Mr. Nguyen holds a master’s degree in banking and finance and is a PhD candidate at National Economic University.