On Oct. 30 the municipal People’s Council approved new financing mechanisms, allowing Ho Chi Minh City to diversify its funding sources. This step shows how a large city can raise billions for infrastructure, a useful example for finance students.

Ho Chi Minh City can issue municipal and project bonds through the Vietnam Innovation Finance Center (VIFC) in Vietnamese dong or freely convertible foreign currencies. Foreign investors are permitted to buy these bonds, and the offerings may be made publicly or privately through underwriting, auctions, agents or direct sales. The city may also use foreign‑affiliated organisations for underwriting and advisory services.

Proceeds from any bond issue must be centrally managed and spent only on projects listed in the city’s medium‑term public investment plan. The municipal budget guarantees timely repayment of principal, interest and other legally incurred expenses.

The city plans to borrow up to VND49.291 trillion (US$1.9 billion) between 2026 and 2030, with domestic bonds expected to account for VND31.732 trillion of that amount. Alongside VIFC bonds, the People’s Council authorized five types of domestic bonds, including local government and green bonds. The newly adopted resolution provides a legal basis for the first bond issuance, aiming to build credibility in international capital markets.

This new bond framework gives Ho Chi Minh City greater flexibility in choosing funding instruments, markets and maturities, while reducing reliance on traditional budget allocations. It also offers a clear model for other municipalities that want to finance large‑scale infrastructure projects through diversified bond markets.