Ho Chi Minh City Eyes Bonds for Infrastructure, Boosting International Capital Inflow

Ho Chi Minh City is considering issuing municipal and project bonds to fund infrastructure development, aiming to create an effective channel for international capital into high-quality domestic projects. This initiative is linked to the ongoing legal framework development for the Vietnam International Financial Centre (VIFC). Dominic Scriven, Chairman and Founder of Dragon Capital, emphasized that legal clarity, consistency, and predictability are crucial for strengthening investor confidence, enabling long-term business planning, and encouraging firm capital commitments to Vietnam. Experts note that the challenge lies not only in attracting international capital but also in creating mechanisms to channel it into businesses and the wider economy. The draft Urban Development Law, expected to be passed by the National Assembly on August 24, 2026, will further codify mechanisms for the VIFC, providing an additional legal foundation for the new model. Vietnam's economic ties are expanding, with Canada being its largest trading partner in ASEAN. Building on the CPTPP, bilateral economic relations are moving into higher value-added areas such as clean energy, critical minerals, advanced technology, manufacturing, and value-chain linkages. The Vietnam-EFTA Free Trade Agreement connects EFTA members, strong in technology and finance, with Vietnam, a dynamic Asian economy. A top priority to build momentum for the year-end is to accelerate public investment disbursement, ensuring 100% of the allocated plan is disbursed without concentration in the final months. The State Bank of Vietnam set the daily reference exchange rate at 25,607 VND/USD on September 14. These efforts underscore Vietnam's commitment to deepening economic cooperation and accelerating domestic infrastructure development for sustainable growth. The focus on legal reforms and facilitating capital inflow into specific projects will be key for foreign investors.