This means that Viet Nam will need to mobilise an additional 50–70 billion USD per year for public investment. In addition, the target of raising total social investment from the current level of around 32% of GDP up to 40% of GDP will require an additional 250–350 billion USD over the next five years.

As a result, the question of how to mobilise sufficient resources to meet high-growth targets has become increasingly urgent. How, then, can the bond market — an important capital mobilisation channel — fully play its role?

Clearly, medium- and long-term capital demand for economic development is expected to double compared with the previous period, placing significant pressure on the bond market. In practice, Viet Nam’s government bond yields — which are among the lowest in the region at around 3–4% — have reduced the market’s attractiveness to foreign investors. In fact, foreign ownership is almost zero, whereas in many regional markets this figure can exceed 20%.

Meanwhile, the role of corporate bonds remains modest and is accompanied by considerable risks. This is one of the major limitations of Viet Nam’s bond market. As a consequence, the capital market’s continued heavy reliance on the banking system has led to mounting pressure from maturity mismatches.

At the same time, according to the Asian Development Bank (ADB) in Viet Nam, outstanding government bonds currently amount to only about 20% of GDP, a very low level compared with many countries in the region. The structure of public debt also shows that domestic debt remains relatively stable, while external debt has declined rapidly over the past five years. These factors provide clear evidence that public finance remains in a safe position and that Viet Nam still has room to increase government bond issuance to expand investment and develop the capital market.

From a long-term perspective, in economic management, the government is prioritising the development of mechanisms and policies to attract foreign investors on a long-term and sustainable basis — through coordinated macroeconomic, monetary, foreign exchange, and capital market policies — rather than relying on short-term capital inflows that carry higher risks.

This implies that the bond market must be developed with longer maturities and a more diversified investor base. Improving liquidity is seen as a crucial solution to providing stable and sustainable funding for businesses while reducing pressure on the banking system. However, the actual number of investors remains limited, and there is still a shortage of institutional investors with strong financial capacity and long-term capital. This poses no small challenge for policymakers.

It is worth reiterating a key principle: capital mobilisation through privately placed corporate bonds must align closely with issuance objectives and ensure the financial health of enterprises and the broader economy. Therefore, mobilising sufficient resources to realise growth ambitions, while at the same time expanding and increasing the number of investors in the bond market, has been identified as a core task for regulatory authorities.

Addressing this complex and cross-sectoral challenge requires close and coordinated cooperation between the Ministry of Finance and relevant ministries and agencies in order to establish a solid foundation for the capital market in the period ahead.