Corporate bond market key to financing Vietnam’s $245 bln infrastructure plan: VIS Rating

Vietnam’s corporate bond market is emerging as a crucial financing channel to support the country’s ambitious infrastructure development plans, which are estimated to require $245 billion between 2025 and 2030, according to a recent report by credit rating agency VIS Rating.

The report highlighted that while Vietnam’s public sector can fund approximately 70% of these infrastructure needs—including expressways, high-speed rail, and power projects—private capital will be essential to bridge the remaining gap.

As bank lending tightens—due to regulatory limits on using short-term deposits for long-term loans—the role of the bond market becomes even more critical. Bank credit to toll road projects, for instance, has declined by 6% annually since 2020.

In order to attract private investment, the Government has conducted many regulatory reforms,  paving the way for project companies to issue bonds more flexibly - such as through privately-placed bond issuances without historical financials under the amended PPP Law.

The state is also stepping in with higher equity contributions to ease debt burdens and improve credit quality.

A forthcoming decree is expected to further unlock the market by allowing public offerings and immediate listings of infrastructure bonds. While issuance conditions will be eased, post-issuance controls, such as trustee oversight, escrow accounts, and regulated disbursements, will tighten, creating a more robust legal framework.

Meanwhile, new requirements on disclosure, issuance standards, and mandatory credit ratings are boosting transparency and investor confidence.

According to VIS Rating, these combined reforms position corporate bonds as a viable and sustainable long-term funding tool to help Vietnam achieve its infrastructure ambitions.