Ho Chi Minh City Plans Foreign Currency Bonds as Listing Options Come Under Review
Ho Chi Minh City is moving to issue municipal and project bonds through its international financial center to fund key projects. The city has approved a proposal allowing issuance and payment in Vietnamese dong or freely convertible foreign currencies. Market participants have called for a review of listing options and exchange rate hedging.
The Ho Chi Minh City government has asked its finance department to work with the Vietnam International Financial Center (VIFC-HCMC) to issue municipal and project bonds through the center to raise funds for key projects. At a special session on October 30, the city’s People’s Council approved a proposal allowing the bonds to be issued and paid in Vietnamese dong or freely convertible foreign currencies.
At the Vietnam Investment Forum 2027 on the afternoon of November 12, Nguyễn Hữu Huân, vice chairman of VIFC-HCMC’s executive body, said this could be Vietnam’s first issuance of foreign currency denominated local government bonds on the international market. Previously, such bonds had been issued only in local currency. He added that the center plans to develop investment funds, invest in companies in the primary market, and advance products related to financial technology regulatory sandboxes and digital assets.
The Vietnam Investment Forum 2027 on November 12.（VietVance）
Nguyễn Sơn, chairman of the Vietnam Securities Depository and Clearing Corporation (VSDC), said that after Ho Chi Minh City issues foreign currency bonds through the international financial center, it should examine whether they can be listed on a regional market or under a special mechanism in Vietnam. If listed, he said, the bonds could become the first product connecting Ho Chi Minh City’s international financial center with Vietnam’s domestic capital market.
Nguyễn Sơn, chairman of VSDC.（VietVance）
Nguyễn Sơn said Vietnam needs to raise about VND 38,500 trillion, or approximately USD 1.45 trillion, to meet its growth targets through 2030—an average of about VND 7,800 trillion a year. State budget funds would account for about 22%, with the rest coming from the private sector, foreign direct investment and foreign indirect investment. He said Vietnam should develop private equity and venture capital funds and improve exchange rate hedging mechanisms to strengthen foreign investors’ confidence when entering and exiting the Vietnamese market.
Source: VietVance
