A July 24 report by VIS Rating and CGIF highlights Vietnam’s urgent need to mobilize private capital for infrastructure, with an estimated $245 billion required from 2025–2030 for expressways, high-speed rail, and power projects. Public funding can only meet 70% of this need, while bank lending is increasingly constrained by regulatory limits. Consequently, Vietnam’s corporate bond market is emerging as a crucial financing channel. Recent regulatory reforms are easing issuance conditions, allowing private placements without historical financials, and enabling public offerings and immediate listings of infrastructure bonds. To balance flexibility with oversight, post-issuance controls such as escrow accounts, trustee supervision, and disbursement regulations are being strengthened. Enhanced transparency standards, including mandatory credit ratings and disclosures, are also improving investor confidence. Credit guarantees—particularly from CGIF—are playing a key role in de-risking infrastructure bonds. Given the sector’s typical high leverage, long tenors, and construction risks, guarantees help improve credit profiles and attract broader investment. CGIF’s Vietnam projects show how such tools support access to capital markets. With these reforms and safeguards, corporate bonds are positioned as a long-term, viable tool for closing Vietnam’s infrastructure financing gap and boosting private sector participation in national development. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Investment Review