Market Summary

Yield Movements

Local currency (LCY) government bond yields in Viet Nam rose by an average of 31 basis points across all maturities between 3 November and 6 February. The yield uptick was partly driven by an expected increase in the bond supply as the government plans to issue bonds worth VND500.0 trillion in 2026, 34.6% higher than the VND371.5 trillion worth of bonds issued in 2025.

Local Currency Bond Market Size and Issuance

At the end of December, total LCY bond stock increased 10.5% quarter-on-quarter (q-o-q) to VND3,972.9 trillion, supported by gains in both the government and corporate bond segments. Outstanding LCY government and corporate bonds recorded accelerated q-o-q expansions of 4.5% and 7.0%, respectively, on increased issuance during the quarter. Meanwhile, total LCY bond issuance declined 7.6% q-o-q to VND1,168.0 trillion in the fourth quarter of 2025, driven by the 17.1% q-o-q contraction in the issuance of central bank securities.

Sustainable Bond Market

At the end of 2025, Viet Nam's total sustainable bonds outstanding remained unchanged from the previous year at USD1.1 billion. This resulted in a slight decline in its share of emerging East Asia's sustainable bond market to 0.15% from 0.16% in the previous year. The economy's sustainable bond market comprises green and sustainability instruments issued solely by the private sector.