Bond market powers Việt Nam’s infrastructure growth

Bond market powers Việt Nam’s infrastructure growth

The Government has shown strong determination to reform institutions, perfect the legal framework and improve the management capacity of the financial market and especially the corporate bond market.

A view of the conference. — VNS Photo

The corporate bond market is increasingly playing an important role in providing medium- and long-term capital for infrastructure development and sustainable growth in Việt Nam, Vice Chairman of the Vietnam Bond Market Association Phạm Phú Khôi said at a conference on Tuesday.

At the Vietnam Bonds and Credit Conference 2025 held in Hà Nội by the Credit Guarantee and Investment Facility (CGIF), Moody’s Ratings and VIS Rating, Khôi said that amid increasing demand for investment in infrastructure, energy, production and technological innovation, corporate bonds will become a strategic financial tool, helping the State and enterprises raise capital effectively, reducing pressure on the State budget and bank credit system.

“In particular, we are witnessing the emergence of new types of bonds such as construction bonds, green bonds, social bonds and sustainable development bonds. This is not only a global trend, but also an opportunity for Việt Nam to access international capital sources while promoting projects with social, environmental and sustainable development values. 

"The development of these tools requires close coordination between management agencies, issuers, investors and market support units,” Khôi said.

According to Khôi, the Government has shown strong determination to reform institutions, perfect the legal framework and improve the management capacity of the financial market and especially the corporate bond market.

“Regulations related to the issuance, trading and disclosure of corporate bonds have been amended and supplemented to enhance transparency, protect investors and promote healthy market development. These are necessary steps for the corporate bond market to become an effective capital raising channel, along with the banking system and the stock market,” Khôi noted.

The association vice chairman went on to state that in the first six months of 2025, the value of newly issued corporate bonds reached VNĐ267 trillion (US$10.3 billion), up 73 per cent over the same period last year. 

The value of resolved late payments to investors tripled over the same period last year, helping reduce the cumulative late payment rate from 16 per cent to 13 per cent and strengthen the confidence of investors and market members.

However, in addition to the need to develop new tools, the bond market is still facing traditional challenges, according to Khôi.

Rapid and strong fluctuations in macroeconomics, interest rates, tariffs and geopolitics are increasing risks for both investors and issuers. In this context, maintaining market confidence and ensuring the ability to raise capital is more urgent than ever.

“This is when the role of credit guarantee units like CGIF becomes especially important. Credit guarantees not only help improve the credit rating of bonds but also strengthen investor confidence, which will help increase the success of issuances, especially for businesses without a strong credit history,” Khôi said, adding that credit rating organisations also play an essential role in helping the market identify and assess the credit risk of each issuer and each type of bond. 

This is a crucial factor to promote new issuance activities, increase liquidity in the secondary market and improve the quality of information for investors, the vice chairman noted.

According to Khôi, as the market rapidly changes, finding innovative capital raising models, suitable financial instruments and effective support mechanisms will be key for the Vietnamese bond market to become a driving force for the country’s sustainable economic growth.

Director and Senior Analyst at VIS Rating Nguyễn Đình Duy told the conference that credit ratings play a vital role in creating a reference price level for the market. Credit guarantees are an important tool to help businesses without a history of issuance easily access the bond market.

According to CEO of CGIF Hongwei Wang, looking ahead to 2026 and beyond, Việt Nam's bond and credit markets are poised for exciting developments, particularly in the infrastructure and sustainable development spaces. The Government's proactive approach in changing economic policies has created a fertile ground for growth.

However, Wang noted: “Opportunities often come with challenges. At this time when global economic growth is threatened by trade tensions and policy uncertainties, it is imperative for Việt Nam to navigate economic vulnerabilities and ensure sustained credit growth in the domestic market. This is where innovation in financing solutions becomes critical.

“Diversification of funding sources is key. By catalysing the issuance of local currency bonds, we help companies reduce their reliance on short-term foreign currency borrowing, fostering greater stability. We are particularly excited about the potential for innovative products like green bonds and sustainability-linked bonds, which not only align with global trends but also support Việt Nam's commitment to sustainable development."

"The recent official release of the Vietnam Green Taxonomy is expected to further support and accelerate the green bond issuances in the market,” Wang added.

At the conference, experts from Moody’s Ratings, Maybank Investment Banking Group and Manulife Investment Management shared international experiences in debt financing for sustainable infrastructure investment in emerging Asian markets and unlocking new capital and business opportunities using credit enhancement solutions. 

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