Vietnam mulls first sovereign dollar bond in over a decade to fund growth

Vietnam’s finance ministry is evaluating a return to offshore sovereign dollar borrowing, the first such issuance since a 2014 $1 billion 10-year bond. Discussions with foreign investment banks have produced proposals for a $500 million-$1 billion 10-year bond carrying a coupon around 7 %, or a $1 billion issue. The government would use the funds for infrastructure and to lessen the funding strain on Vietnamese banks, which have been the primary source of domestic investment loans.

The move follows recent policy shifts, including a higher ceiling for private-sector foreign borrowing and acceptance of development loans from Japan and Germany. Officials say they are weighing the cost of borrowing amid rising global yields, high oil prices and inflation. No final decision has been announced.