Vietnam’s fund management industry assets grew 20% year-on-year in 2019 but only around one-fifth of the companies are profitable, according to a local English-language daily, citing a top official from the country’s securities regulator.
The Viet Nam News quotes Pham Hồng Sơn, vice chairman of the State Securities Commission (SSC), as saying that the industry’s assets under management expanded to 312 trillion dong (US$13.4 billion) last year.
"Only ten out of the total 47 fund management companies are making profit and expanding in the market," Mr. Pham says in the report published on January 10.
He says the regulator has tightened the licensing process for new fund management companies and introduced new rules to ensure firms operate “properly and efficiently", as part of its plan to grow the industry.
"That would help Vietnamese fund management companies meet international standards and practices, and keep the local equity market develop[ing] in a sustainable and secure manner," he says.
According to Mr. Pham, the SSC plans to restructure the industry further in 2020, but the report does not provide more information.
Spokespersons for the regulator did not immediately respond to questions from Asia Asset Management.