Vietnam considers first sovereign dollar bond issuance since 2014
Vietnam’s Ministry of Finance in Hanoi is considering the first sale of sovereign bonds in U.S. dollars in more than a decade and is discussing potential terms with investment banks. This was reported by Channel NewsAsia, which published a Reuters report, citing four informed sources.
According to two sources, the funds raised could be directed toward financing infrastructure and other projects. One source also said that accessing external borrowing markets could reduce the burden on Vietnamese banks, which have so far been the main source of lending for domestic investment.
Possible parameters of the issuance
One foreign investment bank recommended that Vietnam issue $1 billion in 10-year dollar bonds. Another foreign lender proposed placing 10-year securities worth between $500 million and $1 billion, with a coupon rate of about 7%.
No final decision on the placement has yet been made. Two Vietnamese officials said the ministry is assessing borrowing costs amid rising global yields, high oil prices and inflation. The Ministry of Finance did not respond to a Reuters request for comment.
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Domestic and external borrowing
Since the beginning of the year, Vietnam has sold more than $9 billion worth of government bonds on the domestic market. The average coupon on 10-year securities was 4.2%, compared with 3.1% during the same period of the previous year.
The country last issued sovereign bonds on the external market in 2014, when Vietnam raised $1 billion through 10-year securities with a 4.8% coupon. The state also entered international markets in 2010 and 2005.
Vietnam’s public debt was estimated at approximately 37% of GDP last year. This year, the central bank raised the private sector’s external borrowing limit to $6.1 billion, from $5.5 billion in 2025. Examples of foreign financing include a $1.44 billion VPBank loan signed in June with foreign lenders.
