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| A view of the sixth thematic session of the Ho Chi Minh City People’s Council__Photo: VNA |
The Ho Chi Minh City People’s Council has approved a resolution on issuing municipal and project bonds through the Vietnam International Financial Centre (VIFC), opening up a new channel for medium- and long-term financing for key c and laying the groundwork for an international bond market in the city.
The council adopted the resolution during its sixth thematic session, under growing pressure to attract investment capital as infrastructure demands far surpass the city’s budget.
Between 2026 and 2030, the city’s total public investment needs are projected to reach VND 3.1 quadrillion (USD 120 billion), but budget resources are expected to cover only about 31 per cent. A total of 98 major transport and technical infrastructure projects have preliminary investments exceeding VND 1.5 quadrillion. Around 90 projects are proposed for investment under the public-private partnership (PPP) model for 2026-2031, with estimated capital surpassing VND 1.27 quadrillion.
The city aims to maintain average annual GRDP growth in double digits, with total social investment equivalent to 35-40 per cent of GRDP over the five years. Its population is projected to reach around 18 million by 2030 and more than 27 million by 2050, further increasing demand for transport networks and essential infrastructure.
With limited room for budget expansion, diversifying funding sources, particularly by accessing medium- and long-term international capital, has become increasingly important.
The policy basis for the new mechanism was established in Politburo Resolution No. 09-NQ/TW dated May 19, 2026, on developing Ho Chi Minh City in the new era. The resolution allows the city to mobilise funds for key projects through municipal and project bond issuance, as well as loans from domestic and international financial institutions.
The Law on Urban Development 18/2026/QH16, which took effect on October 1, 2026, provides the legal framework for the city to issue such bonds through the VIFC.
The newly approved resolution sets out key provisions on issuers, the use of proceeds, issuance principles and payment responsibilities.
Beyond raising funds for infrastructure, the mechanism would help develop an international bond market, one of the four strategic product pillars of VIFC-HCMC. It would also connect domestic financing needs with international investors and financial institutions while promoting specialised services such as issuance consultancy, capital arrangement, credit ratings and risk management.
Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC Executive Authority, said international capital mobilisation requires coordinated efforts in planning, financial discipline, project preparation and legal frameworks, rather than being merely an isolated transaction.
The resolution provides the legal basis for the municipal People’s Committee to prepare its first bond issuance. Although challenging, this initial offering will be crucial to establishing the city’s credibility in international capital markets and paving the way for subsequent municipal and corporate bond issues through the centre, he said.
According to VIFC-HCMC, the city plans to select several pilot projects for the initial issuance phase. The centre and relevant municipal agencies are working together to identify viable projects suited to this financing mechanism, targeting international investors and VIFC members.- (VNA/VLLF)
