Vietnam's fund management industry assets grew 20% year-on-year in 2019 as the local regulator tightens the rules to make the sector more efficient.
The country's fund management industry assets grew but only around one-fifth of the companies are profitable according to vice chairman of the State Securities Commission (SSC) Phạm Hồng Sơn.
"Only ten out of the total 47 fund management companies are making profit and expanding in the market," Hồng Sơn told the Viet Nam News. The SSC plans to restructure the industry further in 2020, but the regulator's report does not provide more information.
Only ten out of the total 47 fund management companies are making profit and expanding in the market"
Hồng Sơn said 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 added.
According to analysts, the overall poor performance of the Vietnamese stock market is the main reason for mixed results of investment funds and fund management companies.