Vietnam’s ambitions to become a credible regional financial hub risk falling short without stronger transparency, enforcement, and governance, Douglas Jackson, Managing Director at Alvarez & Marsal, has warned in an article published by The Investor→view source.

While new laws set an important foundation, the sector’s persistent trust gap and structural weaknesses remain unresolved.

Key points:

NPLs rose to 4.5 percent by late 2024. Financial scandals and weak enforcement continue.
Corporate bond issuance remains weak. The stock market is dominated by retail investors with low institutional trust.
Cosmetic debt restructuring and off-balance-sheet NPL sales distort transparency.
Complex ownership ties and limited board independence persist.
Higher foreign ownership caps are welcomed, but governance rights and exit terms remain unclear.
Priority reforms include full Basel III alignment, stronger oversight, AI-based regulatory tools, deeper markets, improved public literacy, and honest bank disclosures.

That is to say, Jackson argues that recent financial sector reforms are necessary but not enough, unless they are backed by real transparency, strong enforcement, and better governance, without which Vietnam will struggle to build the trust and resilience needed to become a credible regional financial hub.

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