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Vietnam's State Treasury raised USD 232 million in a recent government bond auction, with sales substantially higher than the previous week. Nearly half of the bonds on offer were sold, bringing total government bond issuance for the year to USD 9.67 billion, aimed at funding public investment projects. While short- and medium-term bonds saw strong demand, long-term bonds attracted limited interest. Corporate bond issuance also remains robust, with significant activity in September and notable upcoming maturities in the real estate and banking sectors, highlighting the country's active debt market.
Vietnam's State Treasury successfully raised 6.12 trillion dong (USD 232.21 million) in a recent weekly government bond auction, surpassing last week's collection of USD 192 million. According to a filing from the Hanoi Stock Exchange, nearly 47.3% of the bonds on offer were sold, a significant increase compared with the 16% subscription recorded at the previous auction. Advertisement
This latest auction brings total government bond sales for the year to 254.9 trillion dong (USD 9.67 billion). The proceeds are primarily intended to fund public investments, which remain a crucial component of the country's economic growth strategy. Vietnam aims to reach a target of 500 trillion dong in bond sales for the year.
At the auction, the treasury sold 1.9 trillion dong of the 2 trillion dong 5-year bonds on offer, with a coupon rate of 3.12%. In addition, 4 trillion dong of the 9 trillion dong 10-year bonds were sold at a coupon rate of 3.69%. The coupon rates for both 5-year and 10-year bonds were higher than last week's rates, which were already the highest for the year.
Sales of longer-term bonds were weaker. Only 120 billion dong of the 1.5 trillion dong 15-year bonds were sold, while the 30-year bonds failed to attract buyers.
On the corporate side, September saw 37 bond issuances with a combined value of 39 trillion dong. This brings the total corporate bonds raised so far this year to 413 trillion dong, according to the bond market association. Looking ahead, corporate bonds maturing in the remainder of 2025 are valued at 47.6 trillion dong, with the real estate sector accounting for 38.5% and the banking sector for 28.9% of these maturities.
Source Reuters
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