Vietnam’s capital markets have grown strongly over the past 20 years. Products and services are increasingly diversified to meet the growing needs of investors and other participants. Moreover, market institutions are more and more professional, providing a safe and sustainable business environment for participants.
Vietnam’s financial markets consist of three subsectors: banking, securities, and insurance. The securities sector currently accounts for 32% of total financial assets, credit institutions 67%, and insurance premiums approximately 1%, indicating that Vietnam is still a bank-based economy. However, the capital markets are growing rapidly.
Vietnam’s financial markets are functionally regulated and supervised by the State Bank of Vietnam (SBV) and the Ministry of Finance (MOF). Vietnam is adopting a sectoral supervisory framework, in which credit institutions are regulated by the SBV, whereas the securities market is regulated by the State Securities Commission (SSC) and the insurance market by the Insurance Supervisory Department, both under the MOF. The National Financial Supervisory Commission coordinates the supervisory work and provides advice to the government in supervising the financial system.