Market Summary

Yield Movements

Viet Nam's strong economic growth propelled the local currency (LCY) government bond yield curve to shift upward across all maturities between 1 September and 31 October. Viet Nam posted the fastest economic growth among all emerging East Asian economies at 8.2% year-on-year in the third quarter (Q3) of 2025, driven by strong domestic consumption. To sustain growth momentum, the government set targets of 16% credit growth in 2025 and 10% economic growth for 2026-2030.

Local Currency Bond Market Size and Issuance

At the end of September, growth in outstanding LCY bonds moderated at 3.1% quarter-on-quarter (q-o-q) to VND3,595.1 trillion on reduced debt sales from the government and corporates. Both the government and corporate bond segments recorded moderated q-o-q expansions of 1.9% and 4.7%, respectively amid reduced issuance during the quarter. In Q3 2025, total LCY bond issuance rose 70.3% q-o-q to VND1,264.3 trillion, driven by a sharp increase in central bank securities as the State Bank of Vietnam sought to support the Vietnamese dong.

Sustainable Bond Market

In Q3 2025, private placements remained the preferred mode of issuance in Viet Nam's sustainable bond market. Private placements, which limit investor participation and the dissemination of public information, continued to account for the majority of Viet Nam's sustainable bonds outstanding. At the end of September, the market's total sustainable debt stock reached USD1.1 billion which comprised green and sustainability instruments and issued solely by the private sector.