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Vietnam’s State Treasury recorded its highest bond auction proceeds of the year in the past week, raising 16.2 trillion dong (USD 616 million), marking a sharp increase from the previous week. Demand improved significantly, with a higher subscription rate across tenures. While 5-year and 10-year bonds were fully absorbed, longer-tenure bonds saw limited participation. The government continues to rely on domestic bond markets to meet its funding target of 500 trillion dong for the year, having already mobilised 114 trillion dong so far amid steady investor interest and stable yields.
Vietnam’s State Treasury raised 16.2 trillion dong, equivalent to USD 616 million, through its weekly government bond auction held in the past week. This marks the highest amount mobilised in a single auction so far this year, reflecting improved investor demand compared to the previous week, when the treasury had raised USD 396 million. Advertisement
Data released through a filing with the Hanoi Stock Exchange indicated that around 93 percent of the bonds on offer were successfully sold, a notable rise from the 59 percent subscription recorded a week earlier. The improved uptake suggests a return of investor confidence in government securities, supported by stable interest rates and predictable returns.
In terms of issuance, the treasury fully sold the 1 trillion dong worth of 5-year bonds at a coupon rate of 3.86 percent. Similarly, the entire 15 trillion dong offering of 10-year bonds was absorbed by the market at a coupon of 4.16 percent, indicating strong demand in the mid-term segment.
However, longer-tenure bonds continued to see relatively weaker participation. Only one-fifth of the 1 trillion dong worth of 15-year bonds was sold at a coupon rate of 4.25 percent. Demand was even lower for 30-year bonds, with just 30 billion dong sold out of the 500 billion dong offered, at a coupon of 4.45 percent.
Vietnam has been actively using bond issuances as a key funding channel to support its fiscal requirements and infrastructure spending. The government has set a target to raise 500 trillion dong through bond sales this year. With 114 trillion dong already raised so far, the latest auction provides a boost towards achieving this goal.
The higher subscription levels in shorter and medium-term bonds reflect investor preference for lower risk and better liquidity, a trend that has been visible in previous auctions as well. Market participants continue to monitor yield movements and macroeconomic conditions, which are likely to influence demand patterns in the coming weeks.
Source Reuters
5th Jun, 2025
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