Types of bond issue:

Vietnam’s bond market began to take shape in the mid-1990s, with the Government issuing a series
of construction and national bonds to finance the State budget. Alongside the economy and
financial market’s development, the bond market has evolved into two main branches:
i) Government bond, Government-guaranteed bond and municipal bond markets and
ii) The corporate bond market. Both were established and gradually grew in response to
financing requirements of the Government, State-owned policy banks, subnational
governments and enterprises.
Four main types of issuers operate in the bond market:
i) the State Treasury is authorized by the Ministry of Finance (MOF) as the issuer of
Government bonds to finance State budget deficits and refinance due debt principals as
stipulated in the State Budget Law and Public Debt Management Law,
ii) State-owned policy banks (Vietnam Social Policy Bank (VSPB) and Vietnam
Development Bank (VDB)) are permitted to issue bonds with Government guarantees to
finance State policy-targeted credit schemes,
iii) Sub-national People’s Committees of provinces and municipalities issue municipal
bonds to fund respective sub-national government budgets and
iv) Incorporated entities issue corporate bonds to service productive and commercial
investments.P nă
Recent development

The number of bonds issued and the total value of corporate bond issuance in Vietnam over the
past 15 years. It can be clearly seen that the corporate bond market in Vietnam really had a
remarkable development starting from 2019, reaching its peak in 2021. However, a year later, the
corporate bond situation Vietnam's industry has a downward trend when the number of bonds

1
issued only reached 640 million bonds (down 78.6%).m 20

Although the size of Vietnam's corporate bond market has grown strongly over the past 15 years,
compared to some countries in the ASEAN region, Vietnam's corporate bond market is relatively
small. Specifically, in 2009, the proportion of Vietnam's corporate bond market size only reached
2.81 billion USD while the country with the largest scale was Malaysia with a scale of 84.17 billion
USD, followed by Singapore. with 52.74 billion USD. By 2022, the scale of Vietnam's corporate
bond market has increased significantly, reaching 30.89 billion USD, an increase of 11 times
compared to 2009. Overall, Vietnam is still a country with a large proportion of of the smallest
corporate bond market in 2009, however, it is worth noting that the growth rate of Vietnam's
corporate bond market is very impressive and has the potential to develop further in the coming
time. surpassed Indonesia and the Philippines to rank 4th when compared with Malaysia,
Singapore and Thailand.