Market Summary

Yield Movements

Between 1 June and 31 August, local currency (LCY) government bond yields in Viet Nam rose across all maturities by an average of 18 basis points due to elevated inflationary pressures generated by the ongoing conflict in the Middle. Concerns over the attainability of the government's 10% growth target increased expectations of higher financing needs, placing further upward pressure on yields.

Local Currency Bond Market Size and Issuance

Viet Nam's LCY outstanding debt securities expansion rebounded 1.7% quarter-on-quarter (q-o-q) in the second quarter (Q2) of 2026 to reach VND4,021.6 trillion at the end of June. Excluding debt securities of 1 year or less, bonds outstanding expanded 3.8% q-o-q in Q2, up from 2.2% in the prior quarter. Total LCY bond issuance climbed 99.2% q-o-q in Q2, driven by a surge in corporate issuance of more than 400%, alongside an 11.1% increase in treasury and other government bond issuance.

Sustainable Bond Market

Outstanding sustainable bonds in Viet Nam contracted to USD0.9 billion at the end of Q2 due to the maturity of a USD0.2 billion green bond during the quarter. Sustainability bonds accounted for 57.9% of the outstanding total, while green bonds comprised the remaining 42.1%. The private sector continues to account for 100% of Viet Nam's sustainable bond stock.