Việt Nam explores samurai bond issuance to tap Japanese capital market

Việt Nam explores samurai bond issuance to tap Japanese capital market

Investors showed interest in the potential issuance, with discussions covering its expected size, maturity, timing and yield.

Delegations from both sides during the discussion. — Photo mof.gov.vn

Việt Nam is exploring the possibility of issuing yen-denominated (commonly called samurai) bonds in Japan, as part of efforts to diversify its international funding sources and mobilise capital for national development.

From November 5 to 10, alongside the high-level visit to Japan by Party General Secretary and State President Tô Lâm, the Ministry of Finance (MoF) organised a non-deal roadshow to strengthen ties with international financial institutions, discuss Việt Nam's economic outlook and explore opportunities to raise funds for development needs.

A key focus of the meetings was the Government's international fundraising plan, particularly the possibility of issuing samurai bonds.

Investors showed interest in the potential issuance, with discussions covering its expected size, maturity, timing and yield.

The guarantee mechanism of the Japan Bank for International Cooperation attracted particular attention, as it could be an important factor in investors' decisions to participate in Việt Nam's first samurai bond issuance.

Most investors expressed interest in maturities of three to five years, while some said they would consider longer tenors if an appropriate guarantee mechanism were available.

Beyond the bond issuance plan, discussions also focused on Việt Nam's growth prospects and its ability to maintain macroeconomic stability. Japanese investors recognised the country's economic achievements in recent years and its flexible policy management amid fluctuations in the global economy and financial markets.

Medium- and long-term growth drivers, including public investment, foreign direct investment, processing and manufacturing, the private sector and innovation, attracted considerable interest.

Investors also discussed emerging growth areas such as technology, AI, data infrastructure and major infrastructure projects.

The economy's resilience to external shocks was another important topic. 

Investors raised questions about exchange rate management, foreign exchange reserves, the impact of US tariff policies, developments in the property market and the soundness of the banking system.

On fiscal matters, financial institutions sought further information about the structure of funding sources, debt servicing obligations and the impact of major projects planned for 2026-30 on the Government's borrowing requirements.

These factors are important to investors when assessing Việt Nam's repayment capacity, public debt sustainability and long-term investment prospects.

Some Japanese investors also expressed interest in the possibility of local government bond issuance, particularly by HCM City, highlighting their attention to funding channels for infrastructure development and large projects.

The meetings also provided the MoF with an opportunity to better understand the requirements of Japan's capital market, including expectations regarding sovereign credit ratings, guarantee arrangements, bond yields and suitable maturity structures.

Information gathered during the roadshow will support the ministry's research and preparation of international fundraising plans, ensuring that potential issuance is aligned with market conditions, the country's financial capacity and public debt management requirements. 

Bizhub