Opening the way for capital to flow into the Vietnamese economy.

Vietnam is facing a crucial opportunity to attract large-scale international investment. The challenge now is to create mechanisms to ensure that this capital flows directly into the economy , becoming a driving force for sustainable growth.

Immediately following his trip accompanying the Deputy Prime Minister on his visit to Singapore, and amidst the context of Vietnam officially launching the International Finance Corporation (IFC), Mr. Don Lam - CEO and Founding Shareholder of VinaCapital Group, an investment fund currently managing nearly $4 billion - had a New Year's conversation with Tuoi Tre newspaper in the third season of the Walk & Talk program.

Drawing from his practical experience, he offers insightful perspectives on IFC, the stock market, and the path to becoming a professional investor.

2026 marks the 30th anniversary of opening the way for strategic international capital flows. In this period of accelerated growth and breakthroughs, the need to attract large amounts of capital is becoming increasingly urgent.

According to Don Lam, with its competitive costs, large domestic market, and increasingly clear commitment to institutional reform, Vietnam is facing a crucial "window of opportunity."

"In the next 5-7 years, if we make good use of the opportunity, we can implement groundbreaking initiatives, gradually putting Vietnam on the map of global financial centers," he said.

Accordingly, IFC is seen as a strategic lever to facilitate the flow of international capital into Vietnam, making it more flexible and deeply integrated into the economic structure, especially with long-term capital flows for technology, infrastructure, fintech, and energy transition.

As a result, Vietnam can access modern financial instruments such as limited partnership funds (GP-LP), trust funds, derivatives, digital assets, and green asset securitization.

More importantly, IFC helps international capital flow directly into Vietnam instead of having to "go around" through other financial centers.

In parallel with the IFC upgrade, the stock market upgrade will open up opportunities for direct access to large-scale capital flows from global index funds, pension funds, and insurance companies.

An expert from the investment fund emphasized: "Given that private businesses still rely heavily on bank loans, IFC is expected to remove this bottleneck and elevate the country's standing. In the long term, I believe this will be a strategic pillar driving economic growth for the next 25 years."

Although the region already has major financial centers like Singapore and Hong Kong, Don Lam, through discussions with many international investors, said they consider Vietnam's legal framework to be quite open. Being a latecomer allows for more flexible policy design, better suited to the new context.

"Vietnam is not building the IFC to compete directly with other parties, but to serve its own development needs, create practical socio-economic value for businesses and people, and gradually remove long-standing 'bottlenecks'," he said.

For example, establishing a commodity exchange for key agricultural products such as coffee, rice, and pepper will help businesses and farmers be more proactive in pricing, access transparent markets, and increase value in the supply chain.

According to its strategy, IFC will rely on two main pillars: unlocking capital markets for key infrastructure projects and developing modern financial products such as multi-asset exchanges, digital finance, cryptocurrencies, green securities, blockchain, and commodity trading platforms.

With competitive costs, a large domestic market, and a unique legal framework, experts believe that "Vietnam has the potential to become a safe, flexible, and promising destination for global financial institutions seeking expansion opportunities in Asia."

Having weathered many ups and downs, the Vietnamese stock market has reached its 30th anniversary and 26th anniversary since its first trading session in 2000. Throughout this journey, the market has gradually become an important channel for capital mobilization, accompanying the growth of the economy.

From the perspective of a professional investment fund representative, if we liken the Vietnamese stock market to a tree that has been nurtured for decades, Don Lam believes that the valuable "branches" have made a significant contribution to the economy.

According to him, the most notable "blessing" is the fact that from just two initial listed companies with a market capitalization of about 1% of GDP, there are now more than 1,600 listed companies with a market capitalization of $330 billion, equivalent to 65% of GDP. The corporate bond market has reached a size of 10-12% of GDP.

The market structure is becoming increasingly diversified with the emergence of derivative products and warrants. At times, liquidity reached 1-1.5 billion USD per day, placing Vietnam among the most active trading markets in ASEAN. FTSE Russell's upgrade to emerging market status also reflects Vietnam's reform and integration efforts.

"In my opinion, each milestone is not only an achievement, but also an opportunity to reflect, learn from experience, and chart a course for the future. Alongside the joy, we need to remain level-headed so that the Vietnamese stock market becomes a pillar of long-term development, especially in boosting the private sector," he shared.

From a frank perspective, he pointed out the "bottlenecks" that need to be addressed in the Vietnamese stock market. One of the major limitations is the rapid increase in the size of listed companies, but the quality is not commensurate, resulting in a lack of diverse investment options.

The current market capitalization structure remains heavily concentrated in finance and real estate (around 60%), while more high-tech and manufacturing businesses are needed to accurately reflect economic trends.

For foreign investors, even with more open policies, the foreign ownership limit (room) remains a barrier, as many stocks quickly reach their limit, forcing foreign investors to buy at a higher rate of 10-20%.

The level of transparency remains low compared to the region due to the lack of widespread adoption of IFRS, the absence of mandatory bilingual financial reporting, and the banking system's non-compliance with Basel III.

Furthermore, the range of financial products is limited. Short selling, T+0 trading, and a central clearing mechanism (CCP) need to be added to meet the criteria for market upgrade according to MSCI standards.

The current market structure relies heavily on individual investors, who account for over 95% of transactions, leading to significant volatility. Developing pension funds, while simultaneously attracting long-term institutional capital, is considered a crucial solution to create sustainability for the stock market.

What is admirable about the founder of VinaCapital investment fund is that despite having a stable job and steady career advancement opportunities in Canada, he still made the decision to return home and become deeply involved in raising international capital for Vietnamese businesses.

"When I decided to return to my roots more than 30 years ago, the first question that always troubled me was: 'How can Vietnam become richer and more developed?'"

Through various experiences, I realized that the most fundamental and effective path is through investment. Based on that realization, I decided to embark on this path," he expressed.

In reality, the early years were extremely challenging, with international investors skeptical about the safety and future of Vietnam. At that time, Vietnam was like a "new product," needing to be introduced and trust built step by step through investment promotion activities.

Over time, confidence has grown, with international investors perceiving Vietnam as politically stable, possessing a diligent workforce, and capable of deeply participating in global production chains. As a result, FDI flows have developed positively, and indirect investment (FII) from financial institutions has also increased, strengthening our country's position as an attractive destination.

"In the coming period, as the economy needs large and long-term capital for key sectors, effectively utilizing the FII channel becomes increasingly important. This also motivates me to be more committed and strive harder in the journey of mobilizing international capital into the country," he said.

The new year brings many expectations, and many young people are gradually shaping their career paths. From this, many want to learn about the core elements needed to "hunt" for opportunities to become professional investors.

According to Don Lam, when meeting young people who want to enter the investment field and aspire to build a position and career in the financial world, he often advises them to start by learning through practical experience at professional investment organizations. Knowledge from school or books is necessary, but it cannot replace practical experience.

A key factor in becoming a professional investor lies in long-term thinking. Note that letting emotions dictate decisions can easily lead to errors, while numbers never lie.

For example, when participating in the stock market, one needs to think long-term, choosing companies with strong brands and sustainable development foundations; that's what true investment is. Conversely, if you only engage in short-term stock trading, making decisions primarily based on emotions rather than strategy, risks are always present.

A strategic vision is an indispensable foundation. Currently, the investment fund focuses on Vietnamese businesses with the potential for growth over the next 10-15 years, especially in sectors such as infrastructure, technology, and consumer goods… Emphasis is placed on the quality of the business, its leadership team, and its operational capabilities.

In addition, strategic thinking and negotiation skills are necessary. He asserted that for successful cooperation, win-win (mutual benefit) must be prioritized, creating greater value together, so that 1 + 1 not just equals 2 but 3, or even more.

In reality, when interacting with international billionaires and getting them to invest in Vietnam, building trust and becoming friends is crucial. Many foreign billionaires rose from humble beginnings; they value simplicity and practicality more than glamour.

Therefore, instead of elaborate receptions at 5-star hotels or Michelin-starred restaurants, some people prefer very ordinary experiences like eating pho or sitting at a street food stall. This closeness helps them better understand the people and culture of Vietnam, gradually sparking their interest in the investment environment.

"Among countless strategies, from very practical experience, I've concluded that to go the distance and succeed in the financial investment world, the most crucial thing is sincerity," Don Lam stated.