The Ho Chi Minh City People's Council approved a resolution on issuing municipal and project bonds through the Vietnam International Financial Centre (VIFC). The mechanism is intended to create a new channel for medium- and long-term financing for major infrastructure projects and lay the groundwork for an international bond market in the city.
The council adopted the resolution at its sixth thematic session. The city faces growing pressure to attract investment capital because its infrastructure needs far exceed budget capacity.
From 2026 to 2030, the city's total public investment needs are projected to reach 3.1 quadrillion VND (120 billion USD), while budget resources are expected to cover only about 31%. Preliminary investment in 98 major transport and technical infrastructure projects exceeds 1.5 quadrillion VND. Around 90 projects are proposed for implementation under the public-private partnership (PPP) model in 2026–2031, with estimated capital of more than 1.27 quadrillion VND.
The city aims to maintain average annual gross regional product growth in the double digits. Total social investment is expected to equal 35–40% of GRDP over the five-year period. The population is projected to reach about 18 million by 2030 and more than 27 million by 2050, increasing demand for transport networks and essential infrastructure.
With limited room to expand the budget, diversifying funding sources, including access to medium- and long-term international capital, has become especially important for the city.
The policy and legal basis for the mechanism was established by Politburo Resolution No. 09-NQ/TW dated May 19, 2026, on developing Ho Chi Minh City in the new era. It 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 No. 18/2026/QH16, which took effect on October 1, 2026, provides the legal basis for issuing such bonds through VIFC.
The approved resolution sets out provisions on issuers, the use of proceeds, issuance principles and payment responsibilities.
In addition to raising funds for infrastructure, the mechanism is intended to help develop an international bond market, one of the four strategic product pillars of VIFC-HCMC. It will also connect domestic financing needs with international investors and financial institutions and support 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 that mobilising international capital requires coordinated work on planning, financial discipline, project preparation and legal frameworks, rather than being treated as an isolated transaction.
The resolution provides the legal basis for the municipal People's Committee to prepare its first bond issuance. Although challenging, the initial offering will be important for 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 phase. The centre and relevant municipal agencies are working together to identify projects suited to this financing mechanism and aimed at international investors and VIFC members.
Sources: VietnamPlus / Vietnam News Agency
