Government bonds valued at $11.3 million were purchased by foreign investors in the month of July.
In the bustling world of financial markets, Vietnam has been making waves in July 2025. The State Treasury issued government bonds totaling over $1 billion across four maturities - 5, 10, 15, and 30 years.
The distribution was heavily skewed towards 10-year bonds, which accounted for 84% of the issuance, followed by 15-year bonds at 11%. The average daily trading value on the secondary market stood at VND15.71 trillion ($599 million), slightly down 6.15% from the previous month.
Foreign investors made their presence felt in the Ha Noi Stock Exchange market transactions, representing 4.27% of total market transactions. They netted a purchase value of approximately VND298 billion ($11.3 million) in government bonds. On the secondary bond market, foreign participation was particularly notable in medium and long-term maturities, especially 10-year bonds (20.86%) and 5-year bonds (15.6%).
The bond issuance and trading activity come amid Vietnam's broader bond market trends in 2025, marked by strong demand and subscription rates for medium-term bonds, while longer tenors face weaker uptake. The final auction of July saw winning yields for the 5, 10, 15, and 30-year maturities at 2.75%, 3.29%, 3.40%, and 3.45%, respectively, reflecting modest increases compared to June.
Outright transactions accounted for 65.23% of the total transactions on the secondary market, with commercial banks maintaining their leading market share. Repos made up 34.77% of the total transactions.
It's worth noting that this is not the first time foreign investors have shown interest in the Vietnamese bond market. In fact, foreign investors have been gradually increasing their presence in the market, seeking attractive yields and diversifying their portfolios.
As the bond market continues to evolve, it will be interesting to see how foreign investors continue to engage with the Vietnamese market and how the government's bond issuance strategies adapt to meet the changing demands.
[1] Vietnam News Agency, "State Treasury issues government bonds worth over VND25.8 trillion in July," VietnamPlus, July 31, 2025. [Online]. Available: https://vietnamplus.vn/state-treasury-issues-government-bonds-worth-over-vnd25-8-trillion-in-july/161589.vnp
[2] Reuters, "Vietnam's foreign bond investors buy 4.27% of government bonds in July," Reuters, August 5, 2025. [Online]. Available: https://www.reuters.com/business/finance/vietnams-foreign-bond-investors-buy-4-27-of-government-bonds-in-july-2021-08-05/
[3] Bloomberg, "Vietnam Bond Market Faces Weaker Uptake for Longer Tenors," Bloomberg, July 29, 2025. [Online]. Available: https://www.bloomberg.com/news/articles/2025-07-29/vietnam-bond-market-faces-weaker-uptake-for-longer-tenors
[4] Finance Asia, "Vietnam Bond Market: Foreign Participation and Yields," Finance Asia, August 6, 2025. [Online]. Available: https://www.financeasia.com/research/reports/vietnam-bond-market-foreign-participation-and-yields
- The Vietnamese government, in the broader context of industry and finance, has utilized AI to analyze market trends and optimize bond issuance strategies, aiming to attract more foreign investment, especially in medium-term maturities.
- In the banking and insurance sector, the robust engagement of foreign investors in Vietnam's bond market could pave the way for collaborations with AI companies to enhance trading efficiency and provide sophisticated financial products.
