Vietnam's government bond issuance slowed markedly in June 2026, reflecting softer market demand and changing conditions on both the supply and demand sides, according to data from the Vietnam Bond Market Association (VBMA).

During the month, the State Treasury conducted 20 government bond auctions with a total offering value of VND68 trillion ($2.58 billion). However, only VND23.38 trillion worth of bonds was successfully issued, resulting in a bid-to-cover success rate of 34.4%, indicating relatively subdued investor appetite.

The value of successful bond sales fell by more than 30% from May and was approximately 23% lower than in June 2025, highlighting a clear slowdown in capital mobilization through government bond auctions.

Issuance continued to be concentrated in medium- and long-term maturities. Ten-year bonds accounted for the largest share of successful issuance at 58%, followed by five-year bonds with 39%.

According to the State Treasury, the average winning yield rose to 4.25% per annum in June, compared with 4.09% in the previous month, suggesting that higher borrowing costs were needed to attract investors.

For the first six months of 2026, total government bond issuance reached VND182.56 trillion ($6.94 billion), equivalent to 36.5% of the annual target.