Market Summary

Yield Movements

Between 1 December 2024 and 28 February 2025, local currency (LCY) government bond yields in Viet Nam climbed an average of 34 basis points across all tenors, propelled by strong economic growth fueled by robust exports and investments. Viet Nam’s economy grew the fastest among its emerging East Asian peers, expanding 7.1% in full year 2024 and surpassing the government's target growth of 6.5%.

Local Currency Bond Market Size and Issuance

Despite reduced issuance from all bond segments, growth in outstanding LCY bonds accelerated to 5.0% quarter-on-quarter (q-o-q) in the fourth quarter (Q4) of 2024 due to reduced volume of matured bonds during the quarter. At the end of December, both the government and corporate debt stock recorded a slower q-o-q growth of 2.3% and 4.4%, respectively, compared to the previous quarter's 5.3% and 8.3% q-o-q growth. Meanwhile, the stock of central bank securities jumped 95.0% q-o-q in Q4 2024, reversing the previous quarter's contraction of 52.6% q-o-q. LCY bond issuance contracted 6.0% q-o-q to VND932.7 trillion in Q4 2024 on reduced debt sale across all bond types.

Sustainable Bond Market

The private sector remained the sole player in Viet Nam's sustainable bond market, which mainly comprises green and sustainability instruments carrying short-term tenors. Total sustainable debt stock grew 11.6% q-o-q in Q4 2024 to USD1.1 billion. The size-weighted average maturity of Viet Nam's outstanding sustainable bonds was among the shortest in emerging East Asia, standing at 2.9 years by the end of Q4 2024.