Vietnam targets bond market at 60% of GDP

Photo courtesy of VNA/VNS/Tran Viet

Vietnam plans to expand its bond market to about 60% of gross domestic product by 2045 as part of a broad overhaul designed to make capital markets a larger source of medium- and long-term finance for the economy.

The strategy, approved under Decision 1413/QD-TTg, seeks stronger links between banking, capital markets and insurance while supporting the country's long-term growth ambitions. Outstanding bonds were estimated at about 34% of GDP in 2025, below the previous target of at least 47% for 2021-2025.

Bond rules and products set to expand

Over the next five years, government bond issuance is expected to meet 60-65% of the State's borrowing needs. Local government bonds are targeted to cover roughly 20% of local budget borrowing requirements during the same period.

Credit ratings will be required for public corporate bond offerings and for privately placed bonds sold to individual investors. Authorities will also study infrastructure bonds, environmental, social and governance bonds, and bonds supporting public-private partnership projects.

The plan calls for bond valuation service providers to improve price transparency and investor decisions. Certification systems for green projects and green bonds will also be strengthened in line with environmental rules.

Foreign investment and insurance targets

By 2030, foreign investors' holdings in Vietnam's capital and stock markets are targeted to reach about 15% of GDP. The net asset value of securities investment funds is expected to rise to around 5% of GDP.

Insurance premiums are targeted to grow by an average 6-8% a year from 2026 to 2045. The plan aims for life insurance coverage to reach 20% of the population by 2045, with average annual premiums of VND7 million per person.

Authorities will explore a regulatory sandbox for insurance technology businesses and establish a National Insurance Data Centre. Blockchain may later be studied for recording claims and supporting an industry-wide early-warning network against fraud.

What it means for foreigners in Vietnam

Foreign investors and businesses could benefit from a wider range of bonds, improved pricing information and stronger market infrastructure. However, the programme sets long-term policy targets rather than guaranteed returns. Anyone considering Vietnamese securities should check investor eligibility, currency exposure, liquidity, taxation and the rules applying to each product, and seek regulated professional advice where appropriate.

30 July 2026