Ho Chi Minh City proposes bond issuance via international financial center

The Ho Chi Minh City People's Committee has released a draft resolution to issue municipal and construction bonds through the Ho Chi Minh City International Financial Center (VIFC). This initiative aims to mobilize medium- and long-term capital to fund the city's key infrastructure and urban development projects.

The bonds may be issued in Vietnamese Dong or freely convertible foreign currencies. Proposed methods for issuance include underwriting, bidding, direct sales, or distribution agencies. The draft resolution, which is currently open for public and expert consultation until October 16, seeks to establish a legal framework under the Law on Urban Development to ensure financial safety, transparency, and risk management.

Priority will be given to technical and urban infrastructure projects that meet green, social, and sustainable environmental standards. All issuances must remain within the city's debt limits, budget deficit plans, and public debt safety indicators. For bonds issued in foreign currencies, the draft allows for exchange rate and interest rate hedging to manage debt obligations.