International experience in balanced financial market development and lessons for Vietnam

This study examines financial market development in Japan, South Korea, Singapore, and Thailand, focusing on their transition from predominantly bank-based systems toward a more balanced structure between banking and capital markets. Using qualitative comparative analysis and secondary data from international and national financial institutions, the study identifies important lessons for Vietnam’s financial reform through 2045. These include reducing excessive dependence on bank credit, strengthening capital markets, improving listed-company governance, developing institutional investors, consolidating risk-based financial supervision, expanding benchmark bond markets, and supporting financial innovation. The findings emphasize that balanced development requires coordinated institutional reform, transparent market infrastructure, effective risk management, and a clear long-term roadmap for mobilizing medium- and long-term capital.