Viet Nam's bond market has improved significantly as the Government continues to initiate reforms and pass enabling legislation. The Government’s first international bond issuance in October 2005 was a resounding success. Local government bonds—both in VND and USD—are issued in large lots while streamlined procedures continue to ease corporate bond issuance.

Government bonds dominate the debt market, followed by municipal and then corporate bonds. Maturities vary from less than 1 year to 15 years. Convertible bonds have also been introduced. Bonds are typically purchased at initial auctions by insurance companies, banks, and individuals; and are held until maturity. A number of licensed securities companies are authorized to provide a full range of securities services—including underwriting, brokerage, advisory, portfolio management, and trading.

The Government has used “equitization” of state-owned enterprises (SOEs) as one of the major tools for expanding the equity side of the capital market without committing itself to outright privatization of state enterprises. It has issued local bonds denominated in US dollars to attract domestic savings. A number of SOEs plan to issue both local and international bonds.

In September 2003, the State Securities Commission (SSC) issued the Capital Market Roadmap with the development of the bond market as one of its key aims. There are three phases of the Roadmap, which can be found by following the link below.