The Executive Agency of the Vietnam International Financial Center (VIFC-HCMC), in collaboration with the International Finance Corporation (IFC), a member of the World Bank Group, held a consultation on international bond issuance at VIFC-HCMC on October 7.
The consultation was part of efforts by VIFC-HCMC and relevant agencies to draft a resolution of the Ho Chi Minh City People’s Council on issuing municipal and project bonds through Vietnam’s international financial center.
Mr. Nguyen Huu Huan, Deputy Head of the VIFC-HCMC Executive Agency, proposed conducting multiple bond offerings under a medium-term issuance program. Common documentation and preparatory work would be completed at the outset, while each tranche would be adjusted to reflect disbursement needs, debt-servicing capacity, and prevailing market conditions.
From an investor’s perspective, Mr. Pavel Kochanov, Senior Municipal Finance Specialist at IFC, outlined the key factors determining a city’s borrowing capacity, including its economic fundamentals, revenue and expenditure structure, liquidity, debt obligations, and financial management quality.
He said the assessment should be based on a financial model covering the entire loan tenor and should incorporate adverse scenarios to test the city’s resilience under less favorable conditions.
On project selection, Mr. Neeraj Gupta, Principal Investment Officer at IFC, recommended prioritizing projects that have completed feasibility studies and secured the necessary land, permits and contractual documentation. Such projects would be positioned to begin disbursement quickly and deliver tangible results sooner.
The pace of capital deployment is also critical, he said, as funds raised but not yet invested in projects continue to incur costs, reducing the financial efficiency of a bond issuance.
In discussions on the strategic direction, Mr. Truong Minh Huy Vu, Vice Chairman of the Ho Chi Minh City People’s Committee and Chairman of the VIFC-HCMC Executive Agency, likened international bonds to a bridge connecting the city with global investors.
That bridge, he said, must rest on four pillars: sound planning, fiscal discipline, well-prepared projects, and a comprehensive legal framework.
Ho Chi Minh City has spent considerable time working with the IFC, financial authorities, and advisory partners to develop solutions for mobilizing international capital while gradually addressing legal obstacles.
Mr. Truong Minh Huy Vu highlighted the importance of the Urban Development Law in establishing a legal foundation and creating opportunities for the city to move forward with international capital mobilization.
“The first issuance will be the bridgehead for establishing Ho Chi Minh City’s credibility in international capital markets. From that foundation, the city can pave the way for subsequent issuances, creating a long-term funding channel and opening further opportunities for Vietnamese businesses to access international capital through VIFC-HCMC,” he said.
