Market Summary

Yield Movements

Local currency (LCY) government bond yields in Viet Nam rose by an average of 33 basis points across all maturities during the period of 2 February and 29 May. The increase was driven by rising inflationary pressures from Middle East tensions and cautious investor sentiment.

Local Currency Bond Market Size and Issuance

Viet Nam's LCY bonds outstanding declined 0.4% quarter-on-quarter (q-o-q) to VND3,995.2 trillion at the end of March, mainly due to a 25.0% q-o-q drop in central bank securities as maturities outpaced issuance. Growth in government and corporate bonds slowed to 2.7% q-o-q and 1.0% q-o-q, respectively. Total issuance in Q1 2026 fell 9.6% q-o-q, driven by 81.4% contraction in corporate bond issuance as financial conditions tightened. Government bonds issuance also declined 34.3% q-o-q, reflecting weak investor demand.

Sustainable Bond Market

Viet Nam's sustainable bond market reached USD1.1 billion at the end of March, comprising green (52.2%) and sustainability (47.8%) bonds. The market comprised entirely by the private sector with 54.8% denominated in United States dollars. Sustainable bonds outstanding were concentrated in short-term maturities of 3 years or less, resulting in a size-weighted average tenor of 1.7 years.