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Vietnam's weekly government bond auction raised USD 229 million, lower than last week's USD 350 million, with only 43% of bonds sold. The total government bond sales in 2025 have reached 293 trillion dong, falling short of the 500 trillion dong target. The treasury successfully sold 10-year bonds at a 3.86% coupon but could not sell 5-, 15-, and 30-year bonds. Meanwhile, corporate bond issuances have reached 506 trillion dong, with a significant portion of upcoming maturities in the real estate and banking sectors.
Vietnam's State Treasury raised 6.05 trillion dong (USD 229 million) in its weekly government bond auction, which was lower than the USD 350 million raised in the previous week. The auction also saw reduced demand, with only 43% of the bonds on offer sold, compared with 66% in the prior round, according to a filing by the Hanoi Stock Exchange. Advertisement
So far in 2025, total government bond sales have reached 293 trillion dong, significantly below the year's target of 500 trillion dong. Proceeds from these auctions are mainly used to fund public investment projects, a key driver of Vietnam's economic growth.
In this week's auction, the treasury sold 6.05 trillion dong out of 9 trillion dong of 10-year bonds offered at a coupon rate of 3.86%. However, it was unable to sell any of the 5-, 15-, and 30-year bonds, which together accounted for 5 trillion dong. This indicates a weaker appetite for both shorter- and longer-term government debt among investors.
On the corporate side, Vietnamese companies have raised 506 trillion dong through bond issuances up to November 21. According to data from the bond market association, 29.4 trillion dong worth of corporate bonds are set to mature in the remaining part of 2025. Of these, 35% belong to the real estate sector, while 27.5% are in the banking sector, highlighting the concentration of upcoming repayments in key industries.
The pattern of lower government bond uptake this week follows a trend of cautious investor sentiment in 2025. While the treasury continues to focus on public investment funding, the disparity between targets and actual sales suggests potential adjustments in bond pricing or structure may be needed to meet full-year targets.
Source Reuters
5th Jun, 2025
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