On the afternoon of April 14, the State Treasury under the Ministry of Finance released an update on government bond issuance in the first quarter of 2026.
According to the agency, the Ministry of Finance has set a target of issuing VND500 trillion in government bonds for the full year.
In the first quarter, the State Treasury conducted 11 government bond auctions, raising more than VND80.1 trillion equivalent to about 16 percent of the annual plan. All bonds were issued via auctions, with flexible maturities ranging from 5 to 15 years. No bids were recorded for longer tenors of 20 to 30 years.
The average issuance tenor stood at 10.02 years, helping maintain the average maturity of the outstanding bond portfolio at 8.44 years. This contributes to restructuring the government debt portfolio and easing short-term repayment pressure.
Issuance yields were managed in line with market conditions and remained consistent with the State Bank of Vietnam’s monetary policy stance.
The average government bond yield as of the end of Q1 2026 was 4.06 percent per annum, up by 0.8 percentage points compared to 2025.
The State Treasury also noted that global political and economic conditions in the first quarter were marked by heightened uncertainty, particularly due to tensions in the Middle East, which have impacted Vietnam’s macroeconomic environment and domestic financial and monetary markets.
Interbank interest rates experienced significant volatility during the quarter. Overnight rates at one point surged to 17 percent per annum, the highest level in the past decade, while the quarterly average reached 5.84 percent per annum, up 1.27 percentage points from 2025 (4.57 percent).
Although liquidity constraints in the banking system persist, credit growth in 2026 is still expected to remain high, at around 15 percent, in support of economic expansion.
