Ho Chi Minh City eyes municipal, project bonds to support infrastructure development

Great reliance on the state budget and conventional bank lending could put considerable pressure on the financial system, making it necessary to develop new and sustainable sources of funding from both domestic and international capital markets.

Ho Chi Minh City (VNA) – The establishment of mechanisms for issuing municipal and project bonds through the Vietnam International Financial Centre in Ho Chi Minh City (VIFC-HCMC) is expected to create an important medium- and long-term financing channel for infrastructure development, easing pressure on the state budget and traditional bank credit.

download-4.png
The core area of the Vietnam International Financial Centre in Ho Chi Minh City (Photo: VNA)

Ho Chi Minh City is entering a phase of breakthrough development, with substantial demand for investment in technical and social infrastructure. According to the municipal People’s Committee, the city needs more than 3.2 quadrillion VND (123.3 billion USD) in total investment across society during 2026–2030, while its budget is capable of supplying only around 1.2 quadrillion VND.

Large-scale projects such as urban railways, seaports, logistics infrastructure and energy transition projects require substantial medium- and long-term capital. Great reliance on the state budget and conventional bank lending could put considerable pressure on the financial system, making it necessary to develop new and sustainable sources of funding from both domestic and international capital markets.

Against this backdrop, the VIFC-HCMC Executive Authority has consulted stakeholders on a draft resolution of the municipal People’s Council on the issuance of municipal and project bonds.

The establishment of a specialised bond financing channel at VIFC-HCMC is seen as being in line with practices adopted by major international financial centres. The consultation involved representatives of central and local authorities, financial institutions, commercial banks, securities companies and economists.

Assoc. Prof., Dr Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC Executive Authority, said the mechanism aims to establish a new capital mobilisation channel, directly connecting the city’s substantial infrastructure financing needs with long-term domestic and international capital flows.

Funds raised through municipal and project bonds are set to focus on key projects with strong spillover effects, he stressed, noting that VIFC-HCMC is currently preparing a portfolio of more than 21 infrastructure projects, from which five to seven highly feasible, large-scale projects will be selected to attract strategic investors to.

Linking bond issuance to specific projects is expected to enhance transparency and enable investors to better assess project efficiency and risks, Huan added.

Experts stressed that a comprehensive legal framework and modern technical infrastructure are essential for municipal and project bonds to prove effective.

Key issues under discussion include the legal framework, inter-agency coordination, bond structures, currencies, maturities, interest rates, credit ratings, risk management and trading infrastructure. The development of green and sustainable bonds is also being considered.

The mechanism is expected not only to address Ho Chi Minh City’s immediate infrastructure financing needs but also to support its long-term development. As a hub for global investment funds, investment banks, asset management firms and fintech companies, VIFC-HCMC could help channel long-term capital into major infrastructure projects.

Beyond financial resources, experts noted that international issuance and trading through VIFC-HCMC could bring advanced financial technologies, modern management practices, international transparency standards, data systems and global expert networks. These resources will help strengthen national competitiveness and enable Vietnamese businesses to access international capital at reasonable costs while supporting their deeper integration into global value chains./

VNA
en.vietnamplus.vn

Other News

Vietnamese experts abroad join efforts to advance nuclear power development at home

Vietnamese experts abroad join efforts to advance nuclear power development at home

Held both in person and online, the seminar focused on the current status and opportunities for Vietnam’s nuclear power programme, human resources development, global trends in small modular reactors (SMRs), experience in ensuring safety and extending the operational life of nuclear power plants, and ways to mobilise Vietnamese experts abroad to contribute to the programme.

Port throughput in Hai Phong exceeds eight-month target

Port throughput in Hai Phong exceeds eight-month target

The strong performance followed a series of measures to optimise port capacity and improve the competitiveness of the city’s seaport system, with a focus on maximising the efficiency of the Lach Huyen international gateway port as new berths came into operation.

Vietnam, Mercosur begin trade negotiations

Vietnam, Mercosur begin trade negotiations

During the session, both sides reaffirmed their determination to advance the negotiations in a spirit of goodwill, with a view to reaching a balanced agreement that aligns with the interests of both Vietnam and Mercosur.

Vietnam poised to benefit from new wave of technology investment

Vietnam poised to benefit from new wave of technology investment

The successful development and production of high-end Pixel smartphones in Vietnam – a more complex process than manufacturing smartwatches and wireless earbuds – is reportedly giving Google confidence in moving its entire Pixel production out of China.

Energy infrastructure underpins marine economy development

Energy infrastructure underpins marine economy development

The integrated investment in energy infrastructure will provide a vital infrastructure foundation for effectively harnessing the marine potential, helping realise the goal of making Vietnam a strong maritime nation and achieving sustainable and prosperous development from the sea.

Ho Chi Minh City hosts International Innovation Forum and Exhibition 2026

Ho Chi Minh City hosts International Innovation Forum and Exhibition 2026

InnoEx 2026 focuses on major shifts reshaping the global economy, including artificial intelligence (AI), data, automation, green transition, international trade and new business models. It also provides a platform connecting businesses, startups, investors and solution providers, facilitating partnerships, investment and access to knowledge and technologies.

Vietnamese enterprises renew growth model to move up global value chains

Vietnamese enterprises renew growth model to move up global value chains

The resolution identifies enterprises as the centre of the renewal process, urging them to shift from cost-based competition to productivity, technology, quality and market responsiveness; from operating independently to joining industrial ecosystems; and from participating in value chains to mastering and eventually leading them.

Khanh Hoa province explores Halal ecosystem development

Khanh Hoa province explores Halal ecosystem development

Khanh Hoa aims to estabish itself as a Halal-friendly destination while supporting businesses in expanding export markets, attracting strategic partners and investors, and drawing projects from countries with strong Halal logistics, tourism, manufacturing, processing and agriculture sectors.

Data-driven land valuation to curb speculation: Experts

Data-driven land valuation to curb speculation: Experts

From a property-market perspective, Do Thi Thu Giang, National Director of Valuation and Advisory at Savills Vietnam, said the orientations under Resolution No. 21-NQ/TW could make the market more transparent and efficient, with property values increasingly tied to actual development and use potential.

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Science and technology, innovation, digital transformation and AI must be translated into higher productivity rather than pursued as ends in themselves. At the same time, people should be placed at the centre of development, not merely viewed as a resource but as the ultimate objective of development policies.

Expo to open door for Vietnamese suppliers to enter US market

Expo to open door for Vietnamese suppliers to enter US market

US retail giant Target is seeking Vietnamese suppliers of household goods, home textiles, children’s products, personal care and beauty products, with a focus on companies capable of manufacturing and developing products that meet requirements on quality, design and supply chain management.

2026 Banking Sector Digital Transformation to open in Hanoi

2026 Banking Sector Digital Transformation to open in Hanoi

The annual event, which will be held on August 18-19, 2026, at the ICE International Exhibition Centre, 91 Tran Hung Dao Street, Hanoi, is expected to attract around 324 delegates and feature 21 booths representing credit institutions, payment intermediary service providers, and technology companies.