Boost for Vietnam's financial market thanks to foreign capital flows

(HTV) - Foreign capital has become one of the important resources for the development of Vietnam's financial market. Not only providing abundant resources, foreign capital also helps promote the process of technology transfer, improve management capacity and open up opportunities to connect with international standards.

According to Decree 69, from May 19, 2025, banks participating in the State Bank's weak credit institution restructuring plan will be allowed to increase their foreign ownership ratio to a maximum of 49% instead of 30%. The expansion of the maximum foreign room is one of the important conditions for banks to be able to issue additional capital to foreign shareholders in case of need to inject more capital into weak banks, speeding up the restructuring process.

Foreign capital has become one of the important resources for the development of Vietnam's financial market.

Mr. Nguyen Huu Huan - Head of the Department of Financial Markets (Ho Chi Minh City University of Economics ), commented: "The banking industry always has great attraction to foreign investors thanks to its high profit potential. Expanding the ownership ratio helps increase investment attractiveness and create stronger development momentum in the context of Vietnam aiming to build an international financial center in Ho Chi Minh City and Da Nang."

In the stock market, many bank stocks have shown strong attraction of foreign capital. According to experts, with the expectation that the stock market will soon be upgraded, foreign capital will tend to approach first. After the upgrade, Vietnam is expected to be able to receive about 1 billion USD in ETF (exchange-traded fund) capital, not to mention larger capital flows from active investment funds.

Expecting the stock market to be upgraded soon, foreign capital will tend to approach first.

Mobilizing foreign capital not only helps banks ensure sustainable operations in the context of increasing bad debt ratios across the system and decreasing bad debt coverage ratios, but also creates a foundation for business expansion in strategic areas.

Ms. Alexandra Smith - British Consul General in Ho Chi Minh City, said that Vietnam needs to promote capital market development, increase the flexibility of financial flows and perfect the legal framework according to international practices to attract more sustainable capital.

According to experts, improving risk management capacity, diversifying financial products and expanding services for domestic investors will help the banking system effectively utilize foreign capital flows, while ensuring long-term stability for the national financial market.

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Source: https://htv.com.vn/suc-bat-cho-thi-truong-tai-chinh-viet-nam-nho-dong-von-ngoai-222251024112258216.htm