…Next
IV. SOME STRATEGIC SOLUTION GROUPS AIMED AT UNLOCKING LONG-TERM CAPITAL FLOWS
1. Improve the legal framework and policy mechanisms for developing the capital market.
For the capital market to fully fulfill its function of mobilizing and allocating financial resources, a prerequisite is to continue improving the legal system in a way that is consistent, transparent, stable, and in line with international practices.
It is necessary to ensure consistency between laws on securities, enterprises, investment, banking, insurance, and regulations related to bond issuance. A lack of uniformity in legal regulations can increase compliance costs, prolong the time it takes to raise capital, and limit the ability of businesses to participate in the market.
For the corporate bond market, it is necessary to further improve regulations on issuance conditions, information disclosure, the responsibilities of intermediary organizations, and mechanisms for protecting investors’ rights. The development of a public bond market should be encouraged, promoting transparency and standardizing fundraising activities.
The secondary bond market needs to be developed. A market with good liquidity allows investors to manage their portfolios more flexibly, reduces the requirement to hold until maturity, and improves the efficiency of risk pricing.
In addition, it is necessary to improve the mechanisms for developing bond investment funds, pension funds, infrastructure investment funds, and long-term financial products. According to Saigon Ratings, perfecting the legal framework aims not only to increase the number of participating entities but also to create a capital mobilization mechanism based on market discipline, accountability, and risk control.
2. Linking the improvement of legislation with the overall financial market reform plan.
According to an article in Investor Magazine dated July 19, 2026, the Prime Minister requested the Ministry of Finance to coordinate with relevant units to urgently finalize and submit the overall financial market reform plan in July 2026, while prioritizing the development of the domestic capital market as a channel for long-term capital mobilization. The directive also mentioned the healthy development of the corporate bond market and the promotion of international financial centers in Ho Chi Minh City and Da Nang.
The article also notes the tasks of resolving land-related issues, site clearance, investment procedures, handling slow-moving projects, tax refunds, and settlement of public investment capital. These issues directly impact the ability to secure financing for projects, the progress of capital recovery, and the quality of the enterprise’s cash flow.
In terms of policy, a reform roadmap with responsible agencies, implementation milestones, and output targets needs to be developed; emphasis should be placed on coordination between the monetary, securities, bond, insurance, and asset management markets. At the time of reporting, the reference sources only confirm the requirement to submit the Proposal, and are not evidence that the Proposal has been approved or that the measures have been completed.
3. Improve national creditworthiness to enhance access to international capital.
In the process of international financial integration, national creditworthiness significantly impacts the ability of the government and domestic businesses to raise capital and the cost of using that capital.
National credit ratings reflect assessments by international rating agencies of the government’s ability and willingness to fulfill its debt obligations. Factors considered include economic strength, fiscal capacity, public debt burden, external standing, institutional quality, and shock response capabilities.
As national creditworthiness improves, the country risk premium is likely to decrease, facilitating easier access to international capital. However, the cost of raising capital still depends on international interest rates, market liquidity, the maturity of the loan, and the individual creditworthiness of each issuer.
During the period 2026–2030, Vietnam needs to continue consolidating macroeconomic stability, improving the efficiency of public debt management, maintaining fiscal discipline, and strengthening the resilience of the financial system. Improving the transparency of economic and financial information and the predictability of policies will also contribute to strengthening international investor confidence.
Saigon Ratings believes that improving national creditworthiness should be considered part of a capital market development strategy, with ripple effects on the ability of both the public and private sectors to raise capital.
4. Restructure and establish a rational balance between bank credit, the stock market, and the corporate bond market.
This is a crucial solution for meeting the economy’s long-term capital needs. The problem lies not only in the differences in scale between capital channels, but also in the suboptimal division of labor.
Bank credit currently accounts for a large proportion of financing medium- and long-term capital needs, while the stock and corporate bond markets have not yet fully played their role in directly raising capital.
Firstly, strengthen the role of bank credit in financing activities that are consistent with the characteristics of capital sources and risk management capabilities, including working capital, trade finance, supply chain finance, and appropriately term loans.
Secondly, developing the stock market into an important channel for raising long-term equity capital supports increased financial capacity, reduces dependence on debt, and enhances the resilience of businesses.
Thirdly, develop the corporate bond market into a medium- and long-term debt financing channel capable of transparent risk pricing, through expanding the investor base, improving product quality, strengthening credit ratings, and developing the secondary market.
These three channels of capital are complementary. A business with a sound financial structure can combine equity capital, bank credit, and corporate bonds to optimize its cost of capital.
According to Saigon Ratings, a balanced financial system is not one with equal proportions of capital across different channels, but rather one with a rational allocation of functions, the ability to share risks, and efficient capital mobilization that aligns with the development needs of the economy .
5. Improving corporate creditworthiness – A fundamental solution to unlock long-term capital flows.
These solutions are of particular importance in the development of Vietnam’s capital market.
In the modern financial environment, a company’s ability to raise capital depends not only on its asset size, market position, or short-term business performance, but also on its ability to demonstrate creditworthiness to capital providers.
Corporate creditworthiness is determined by competitiveness, business position, governance quality, capital structure, operational efficiency, cash flow generation capacity, and ability to fulfill financial obligations.
Firstly, there is a shift from traditional financial management to financial management focused on creditworthiness. Businesses need to control leverage, ensure liquidity, and maintain a balance between cash flow and debt obligations. Indicators such as debt/EBITDA, EBITDA/interest expense, operating cash flow/debt, and debt repayment capacity should be monitored regularly, tailored to the industry and business model.
Secondly, proactively conduct independent credit rating assessments. Credit ratings help businesses identify factors that support and limit their credit profile; they provide a reference point for credit institutions, bond investors, and financial partners when assessing risk.
For businesses with long-term fundraising strategies, proactively assessing creditworthiness can standardize financial information, enhance transparency, and support access to capital markets.
Third, build a credit management culture as part of the business development strategy. Credit quality should not be the result of a single assessment at the time of bond issuance or borrowing. Businesses need to maintain a long-term credit management strategy linked to objectives related to capital structure, cash flow, risk management, and sustainable development.
From Saigon Ratings’ perspective, improving creditworthiness is practically significant for access to capital, as investors are interested in both expected returns and the ability to fully and timely recover their investment capital. However, credit ratings do not replace independent investor assessment and are not a guarantee of debt repayment ability.
