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HÀ NỘI — The domestic stock market is poised to play a more central role in financing the country's private sector, as policymakers and market participants seek to rebalance a financial system long dominated by bank credit.

The economy still relies heavily on bank lending, while capital markets remain underutilised. This imbalance has made it difficult for businesses to access long-term funding for expansion, innovation and technological upgrades.

Against this backdrop, regulators are placing renewed emphasis on the stock market as a strategic financing platform. 

Lê Thị Việt Nga, vice chairwoman of the State Securities Commission of Việt Nam, said the market has already established itself as an important capital mobilisation channel for enterprises, citing strong growth in recent years.

In 2025, capital raised through the equity market surged to VNĐ744.48 trillion (US$28.3 billion), up 42 per cent from the previous year, reflecting improved depth and investor participation.

Nga said that in the next phase of development, the stock market would serve not only as a financing channel, but also as a strategic financial platform supporting private enterprises in accessing transparent, long-term funding sources.

"The stock market is not just a component of the economy. It acts as a financial foundation and a strategic platform connecting the private sector with medium- and long-term capital flows, both domestically and internationally," she said at a forum themed 'The Private Sector in a New Era of National Advancement' on May 6.

This push comes as Việt Nam's private sector continues to face significant barriers in accessing capital markets, despite accounting for around 97 per cent of businesses, contributing more than half of GDP and creating the majority of jobs.

According to CEO of SSI Securities Corporation Nguyễn Đức Thông, fewer than 1 per cent of Việt Nam's roughly one million enterprises are listed or registered for trading on the stock market, underscoring a substantial finance gap.

He described the current capital mobilisation model as imbalanced, noting that bank credit cannot remain the sole pillar for economic growth, particularly as long-term financing needs rise alongside infrastructure and industrial development.

Việt Nam's credit-to-GDP ratio stands at about 146 per cent, among the highest in the region, while a large portion of bank funding remains short-term, creating maturity mismatches for long-term investment needs.

In contrast, the equity market has expanded significantly, with capitalisation reaching approximately 78 per cent of GDP in 2025. However, access remains uneven, particularly for small- and medium-sized enterprises, which face challenges related to transparency, governance standards and listing requirements.

To address these issues, regulators are advancing a series of reforms aimed at strengthening the capital market's role. These include improving the legal framework, modernising trading infrastructure, promoting public offerings tied to listing and diversifying financial products, such as corporate bonds and green instruments.

Authorities are also working to enhance market transparency and corporate governance, recognising that these are key prerequisites for attracting both domestic and international investors.

"The development of the stock market and the private sector clearly has a complementary relationship," Nga said, adding that the market both enables capital mobilisation and acts as a lever to improve corporate governance and operational standards.

Market intermediaries, particularly securities companies, are expected to play a pivotal role in this transition. 

Thông described them as a strategic bridge between enterprises and long-term capital, helping firms structure financing solutions, meet disclosure standards and connect with institutional investors.

Their role includes advising on capital strategy, designing suitable financial instruments and facilitating access to global investor networks, especially as Việt Nam moves closer to a potential market upgrade and deeper integration into international capital flows.

Looking ahead, policymakers have outlined a development strategy built on multiple pillars, including ensuring market stability and sustainability, expanding access for private enterprises and strengthening the investor base.

Efforts are also underway to accelerate digital transformation and apply advanced technologies in trading, supervision and settlement systems, aimed at improving efficiency and resilience.

At the same time, private enterprises are being encouraged to adopt international governance standards, enhance transparency and proactively engage with capital markets as part of their long-term growth strategies.

"Enterprises need to shift from a passive approach to capital access to a proactive strategy, viewing the stock market as an integral part of their development roadmap," Nga said. — BIZHUB/VNS