Vietnam raises $219mn in govt bond auction, coupons highest this year

HANOI: Vietnam’s State Treasury raised 5.78 trillion dong ($219 million) in a weekly government bond auction on Wednesday, down from $274 million raised last week, with coupons hitting their highest levels this year.

The uptake was also lower, with 42.8% of the bonds on offer sold, compared with 53.5% at last week’s auction, according to a Hanoi Stock Exchange filing.

The auction took total government bond sales so far this year to 243.7 trillion dong ($9.23 billion), according to exchange data. Vietnam uses the proceeds from bond sales mainly to fund its public investments, one of the key drivers of economic growth. It aims to raise 500 trillion dong this year.

At Wednesday’s auction, the treasury sold 5.58 trillion dong out of the 9 trillion dong of 10-year bonds on offer, at a coupon of 3.59%.

It also sold 150 billion out of the 1 trillion dong of 5-year bonds offered at a coupon of 3.03%, while only 50 billion dong out of the 500 billion dong of 30-year bonds on offer were sold, at a coupon of 3.64%.

The coupons were the highest so far this year. The treasury failed to offload any of the 3 trillion dong of 15-year bonds offered.

On the corporate side, Vietnamese companies have raised 393.5 trillion dong via bonds this year up to Sept. 19, according to bond market association data.

The value of corporate bonds maturing in the remainder of 2025 is 51.4 trillion dong, of which 40.5% is in the real estate sector and 26.8% in the banking sector, the data showed.