Where will capital for the upcoming development phase originate? How can large-scale funding be mobilized while safeguarding national financial stability? What new financial tools and models are required to leverage social and international resources?

Nguyen Thanh Nghi, Politburo Member, Secretary of the Party Central Committee, and Head of the Central Policy and Strategy Commission, raised these three core questions during the financial resources session at the 2026 Annual New Economy Forum held several days ago. 

Long-term capital 

Dr. Can Van Luc, member of the National Financial and Monetary Policy Advisory Council, estimated capital investment demand over the next five years at VND38.5 quadrillion. The public sector is expected to cover 22 percent, leaving the remaining 78 percent to be mobilized from private and foreign investment sources.

It is estimated that bank credit accounts for approximately 48 percent of total supply, while corporate stocks and bonds combined represent roughly 15 percent.

Major infrastructure projects such as expressways and seaports require extended construction periods and lengthy capital recovery timelines. Over-reliance on commercial banking networks for long-term project financing increases systemic liquidity pressures while restricting credit availability for productive business enterprises.

Ta Thi Tue Anh from HSBC identified an underutilized domestic capital pool in fund and asset management services catering to life insurance firms.

According to HSBC estimates presented at the forum, the life insurance sector manages over $30 billion in assets but has very few channels for long-term investment. She noted that this was not yet an official figure. At present, the funds are invested mainly in treasury bonds and short-term bank deposits.

“I think we can mobilize a very large pool of domestic capital before looking overseas,” she said.

Trinh Van Can, CEO of Kafi Securities, highlighted voluntary pension funds. Although the policy framework has been in place for more than a decade, he said, assets under management have reached only around VND2.2 trillion.

He offered a hypothetical calculation: if one million people each contributed VND2 million a month, they would generate VND2 trillion in long-term capital every month. The calculation illustrates the potential for accumulating capital through regular contributions from workers.

He also suggested looking at the US’s individual retirement accounts (IRAs), which allow individuals or employers to make regular contributions for investment in eligible assets. Such arrangements could open up an additional channel for long-term funding.

Mobilizing capital while accounting for risk

Mariam J. Sherman, World Bank Country Director for Vietnam, Cambodia and Laos, said public resources alone could not meet the country’s needs. Nor should the banking system bear most of the burden of infrastructure financing.

She called for deeper domestic bond markets and a broader investor base. On international funding, raising Vietnam’s sovereign credit rating to investment grade could help lower borrowing costs for both the government and businesses.

However, funding channels can only work effectively if projects are convincing enough to attract investors. Sherman identified several obstacles: unpredictable revenue, limited foreign exchange hedging instruments and insufficiently stable contractual terms.

Investors must consider all these factors before committing funds for many years. Large development plans must therefore be translated into investment proposals whose returns and risks can be properly assessed.

For public investment, she recommended carefully selecting projects before allocating capital and fully accounting for operating and maintenance costs. Completing a facility is not enough; funding must also be available to maintain it and ensure that it delivers the expected benefits.

Combining funding sources 

For projects requiring large amounts of long-term capital, Sherman suggested mechanisms that combine public funding, concessional loans and private investment under professional management, with clear rules and transparent information.

Such mechanisms could provide long-term financing in local currency, guarantees and credit enhancement instruments to address specific risks. They could also help ministries, sectors and local authorities prepare a pipeline of projects ready to attract investment.

Project preparation is critical to connecting capital with viable investments. Before committing funds, investors need to understand projected revenue, costs, risk-sharing arrangements and the basis for contract enforcement.

Sherman also proposed capturing part of the increase in land value generated by new transport corridors and using the proceeds for maintenance, further investment and community services. This would allow some of the value created by public investment to be reinvested in infrastructure.

Lan Anh