Abstract

The Kim Au Association for Economic Development has completed the research report "Study on Capital Market Opening and the Cultivation of Domestic Institutional Investors", which, after formal examination, independent preliminary review and cross re-review by the Expert Committee, has been publicly released and archived long-term in the research output and resource library. This output is based on public statistics and the Association's own surveys, striving for methodological rigor and verifiable conclusions.

Research Background

Cultivating domestic institutional investors and developing the capital market is an important direction for broadening enterprises' direct financing and enhancing the resilience of the financial system; at present, market depth and investor structure still need improvement.

Method and Data

The study follows the Association's research standards, combining quantitative and qualitative methods:

• Data sources: the General Statistics Office of Vietnam (GSO), publicly available industry data, and the Association's dedicated surveys;
• Analytical methods: structural analysis, regional comparison and international benchmarking, supplemented by representative cases;
• Quality control: independent review by the disciplinary review panel and the Expert Committee, with conflict-of-interest recusal and confidentiality enforced.

Key Findings

• Institutional investors' shareholding accounts for about 20%, significantly lower than mature markets in the region;
• Direct financing accounts for less than 25% of total social financing, while indirect financing still dominates;
• Companies with higher scores on information disclosure and governance have on average about 1.5 percentage points lower financing costs.

International Comparison and Reference

The study benchmarks against major ASEAN economies and relevant international experience, analyzing their practices and applicable conditions in institutional design, policy tools, and implementation paths, providing referable lessons for Vietnam's improvement while pointing out the risks of wholesale copying and the necessity of localization.

Representative Cases and Applications

The study selects representative cases from the Southern and Mekong regions for analysis, examining the effectiveness and constraints of the relevant practices in reality, so as to strengthen the practical explanatory power and operability of its conclusions.

Conclusions and Recommendations

Based on the above findings, the study proposes several directional recommendations toward institutional improvement, factor optimization, and regional collaboration, and identifies issues that follow-up research can further explore. The relevant conclusions have been translated into the Association's policy recommendations and advisory opinions.

Review and Archiving

The review process and conclusions of this output are made independently, free from administrative, sponsorship, or external interference; the full text and abstract are archived in accordance with regulations and can be verified by number through the Association's inquiry system.