September 15, 2026 —
Vietnam is considering issuing a sovereign dollar bond for the first time in more than a decade as the government explores additional ways to fund infrastructure and other projects.
The finance ministry has been discussing potential terms with investment banks, according to four people familiar with the talks. The government has not yet made a final decision on whether to proceed with a transaction.
Vietnam has set a target of at least 10% annual economic growth through 2030. Raising funds internationally could provide financing for expenditures linked to that ambition while giving the government another source of capital.
An international bond sale could also reduce some of the financing burden on Vietnamese banks, which have traditionally played a major role in funding domestic investment.
One foreign investment bank has suggested that Vietnam issue a $1 billion, 10-year dollar bond, according to a banker who attended a meeting with the finance ministry.
Another lender has recommended a 10-year transaction of between $500 million and $1 billion, with a coupon of about 7%, according to a separate source familiar with the proposal.
The government is carefully considering borrowing costs as global yields rise amid higher oil prices and inflation.
Vietnam last entered the offshore sovereign bond market in 2014, raising $1 billion through a 10-year dollar bond with a 4.8% coupon. It had previously tapped international markets in 2010 and 2005.
A return to overseas borrowing would represent a change for Vietnam, which has historically exercised tight control over its financial system and taken a cautious approach to international fundraising.
That stance has become less restrictive in recent months as the government seeks faster economic growth while navigating uncertainty surrounding global trade. Because Vietnam relies heavily on exports, changes in international trade conditions are particularly significant for its economy.
The country has already taken measures to facilitate foreign financing. The State Bank of Vietnam raised the ceiling for private-sector foreign borrowing to $6.1 billion this year, up from $5.5 billion in 2025.
Vietnam has also shown greater openness to international development financing. This year, the government agreed to accept development loans from Japan and Germany after previously turning down billions of dollars in such funding.
At home, government borrowing remains significant. Vietnam has issued more than $9 billion of government bonds in the domestic market so far this year. The average coupon for 10-year debt stands at 4.2%, compared with an average of 3.1% for 10-year debt over the same period a year earlier.
If completed successfully, a dollar bond sale would expand Vietnam’s financing choices and give the government another avenue for funding infrastructure investment.
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