
Ho Chi Minh City Turns to Bonds to Bridge Infrastructure Funding Gap
TP.HCM phát hành trái phiếu để lấp khoảng trống tài chính hạ tầng
Source: Vietnamnet
Ho Chi Minh City is planning to issue municipal and project bonds through its Vietnam International Financial Centre. The move aims to secure long‑term capital for the city’s massive infrastructure needs. Understanding this strategy shows how a rapidly growing metropolis deals with funding shortfalls.
Between 2026 and 2030 the city expects to need about 3.1 quadrillion VND (US$120 billion) in public investment, yet the budget can fund only roughly 31% of that amount. This shortfall forces the city to look for new financing tools.
The Ho Chi Minh City People’s Council approved a resolution to issue municipal and project bonds through the Vietnam International Financial Centre. The resolution is intended to attract long‑term capital for major infrastructure projects and to lay the groundwork for an international bond market in the city.
Because the city’s budget has little room to expand, diversifying funding sources has become increasingly important. Accessing medium‑ and long‑term international capital is seen as a key way to fill the financing gap.
The city has identified 98 major transport and technical projects with preliminary investment exceeding 1.5 quadrillion VND. In addition, about 90 public‑private partnership projects planned for 2026‑2031 will require more than 1.27 quadrillion VND.
The new bond mechanism is backed by Politburo Resolution No. 09‑NQ/TW (May 19 2026) and the Law on Urban Development No. 18/2026/QH16 (effective Oct 1 2026). These legal tools give the municipal People’s Committee authority to prepare the first bond issuance, helping the city start closing its huge infrastructure financing gap.
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