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Vietnam's State Treasury raised 8.44 trillion dong, or USD 323.8 million, in its latest government bond auction, marking a decline from the previous week as investor participation softened. Only 58% of the bonds on offer were sold, taking total bond sales for the year to 24.4 trillion dong. Demand was concentrated in 10-year bonds, while longer and shorter tenors saw weak interest. Meanwhile, corporate bond activity remained modest, with large maturities ahead, especially in the real estate sector.
Vietnam's State Treasury raised 8.44 trillion dong, equivalent to USD 323.8 million, through its latest weekly government bond auction, reflecting a decline from the previous auction's USD 496 million mobilisation. The reduced fundraising points to softer investor participation compared to the prior week. Advertisement
Demand also moderated, with around 58% of the total bonds offered finding buyers, slightly lower than the uptake recorded in the preceding auction. Data released by the Hanoi Stock Exchange showed that cumulative government bond sales for the year have reached 24.4 trillion dong so far.
Funds raised through these bond issuances are primarily channelled into public investment projects, which remain a key pillar of Vietnam's economic growth strategy. The government has continued to rely on bond markets to support infrastructure development and long-term capital spending.
In the latest auction, the treasury sold the full 8.44 trillion dong raised through 10-year bonds, out of the 12 trillion dong offered, at a coupon rate of 4.04%. Longer-dated instruments saw weaker demand. Only about one-fifth of the 1 trillion dong worth of 15-year bonds on offer were sold, carrying a coupon of 4.12%.
No bids were accepted for the combined 1.5 trillion dong worth of 5-year and 30-year bonds offered, highlighting investor caution at both the short and very long ends of the yield curve.
On the corporate front, Vietnamese firms raised 3.7 trillion dong through bond issuances in the year up to the third week of January, according to data from the country's bond market association. The pipeline of bond repayments remains sizeable, with corporate bonds worth 204 trillion dong scheduled to mature during the rest of the year.
The real estate sector accounts for the largest share of upcoming maturities at 61%, underlining continued pressure on developers balance sheets, while the banking sector represents 11.2% of the total maturing value.
Source Reuters
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