Vietnam Fund Management Assets Reach USD32bn as Industry Expands

Vietnam fund management assets have reached more than VND846tr (USD32bn) as the industry takes a larger role in supplying long-term capital and supporting development of the country’s institutional investor base.

At the end of June, 43 fund managers and 142 investment funds were operating in the market.

Assets under management had increased 6.8 times from 2015, representing annual growth of more than 20%.

Despite that expansion, managed assets remain equivalent to only around 6% of gross domestic product, substantially below levels in many regional markets.

Industry executives estimate the share could rise to between 15% and 20% as demand for professional investment services grows.

A potential emerging-market upgrade for Vietnam could attract around USD2bn from investment funds.

Sustaining those inflows will require a broader range of listed companies, stronger corporate governance and higher-quality investment opportunities beyond banks, securities firms and property developers.