Investment Management in Vietnam: What Are the Options for Expats?

Investing via the stock market

Despite Vietnam’s dynamic economic growth, most of my clients continue to allocate the majority of their portfolios to overseas markets – primarily in the US, UK, and Europe.

Their exposure to Southeast Asia often comes indirectly, via global or regional index funds such as the FTSE All-World Index or broader emerging market ETFs. As a result, direct investment into Vietnam remains relatively limited.

Investor appetite for Vietnam may grow significantly when the country’s stock market is upgraded from frontier to emerging market status.

Vietnam has been on FTSE Russell’s watchlist since 2018, and the government is actively working toward meeting the criteria by modernising the legal framework, upgrading trading systems, and improving foreign investor access.

Once this upgrade is confirmed, passive index funds and emerging market ETFs are expected to increase their allocation to Vietnam automatically – bringing with them billions in foreign capital. This could create new opportunities for individual investors as well, both locally and abroad.

In the meantime, there are other routes available to individuals who are interested in investing in Vietnam:

Managed funds through Vietnamese banks

One of the more accessible options for resident expatriates is to invest in actively managed funds offered by established firms such as Dragon Capital and VinaCapital.

These funds focus on Vietnamese equities and bonds and are often available through major Vietnamese banks. They give investors local market exposure without the complexities of picking individual stocks or navigating the regulatory system alone.

Direct investment in Vietnamese SMEs

Some clients are also drawn to private investments in small- and medium-sized enterprises (SMEs), particularly in sectors like hospitality, technology, and import-export. These investments can offer attractive growth potential, but they also carry significantly more risk and complexity than managed funds or public equities. 

Key concerns include:

• Ownership rules: Foreigners often question whether they need to partner with a local shareholder to legally operate – and if so, how to find someone trustworthy.
• Lease stability: Long-term commercial leasing is a common concern, especially around landlord reliability and potential contract changes mid-term.
• Administrative and regulatory hurdles: Many investors feel that navigating permits, licenses, and local compliance requires insider connections – something expatriates often lack.
• Capital controls: There is also uncertainty about whether profits can be easily repatriated when exiting an investment. While Vietnam has made progress in this area, practical concerns remain.

It’s important to note that while these risks are real, they may not be as severe in practice as many believe. For most individual investors, clarity, legal certainty and trustworthy local partners are essential before they’re willing to commit capital, and caution is recommended.

Over the years, Vietnam has made progress in clarifying its business procedures and regulations. However, for many foreign investors, this information remains fragmented, difficult to access and often poorly translated into English. This lack of clarity leads many expatriates to rely on third-party agents or consultants to interpret the rules and manage the paperwork on their behalf.

While some of these intermediaries are competent and well-intentioned, others are not. This can lead to negative outcomes.

An official, centralised platform offering up-to-date, English-language information on topics such as business establishment, taxation, visas and legal compliance would be a game-changer. Until such a resource is fully developed, foreign investors must take extra care to verify the reliability of the information they receive – and of those providing it.

Authorities would do well to promote greater transparency by advertising trustworthy sources of information and professional services – on public transport, in airports, and through expatriate networks. This would send a strong and reassuring message: Vietnam welcomes foreign investment – but wants it to be done right.

If you’re an expat investor in Vietnam, it’s important to exercise caution and seek professional advice from an adviser with a proven track record, recognised credentials and a clear understanding of both local regulations and international standards.

As Vietnam continues to modernise its financial systems and regulatory environment, a good adviser can help you be part of the country’s growth story, benefiting from the range of potential investment opportunities available to you while ensuring that you make informed choices aligned with your goals, experience and risk tolerance.