Vietnam Overhauls Financial Market, Boosts Bond Market for Growth

Vietnam is advancing a comprehensive overhaul of its domestic financial market, with a particular focus on strengthening the bond market to foster long-term economic growth. The plan aims to deepen integration with regional and global markets and enhance the efficiency of capital mobilization and allocation. The core of the strategy is to strengthen the market's role as a key provider of medium- and long-term capital for the economy, driving sustained high growth. Vietnam seeks to enhance cooperation with partners like the UK in capital market development, green transition, green finance, and the establishment of the Vietnam International Financial Centre (VIFC). Under Decree No 200/2026/ND-CP, enterprises issuing bonds will continue to operate under the principle of self-borrowing, self-repayment, and self-responsibility, holding full accountability for capital usage efficiency, debt repayment capacity, and any disputes arising from bond issuance, fund utilization, and principal/interest payments. This measure is intended to ensure the sound development of the market and investor protection. By deepening ties with international financial markets, Vietnam aims to secure more diverse funding avenues and bolster the foundation supporting economic stability and growth. This is positioned as a key pillar of its economic policy within the one-party system. Furthermore, Vietnam is pursuing diversification of its trade, exploring new growth engines such as increased shrimp exports to China and revitalizing the rural economy through cross-border e-commerce. The country also emphasizes investment in renewable energy and green finance as part of its environmental response. Source: VietnamPlus English