The Japanese Embassy in Vietnam recently celebrated 20 years of Japan–ASEAN Financial Technical Assistance (JAFTA), highlighting long-term support for the development of Vietnam’s bond market and broader financial sector collaboration. The event took place in Hanoi on November 28, 2025.

Key Highlights for Financial Markets

Bond Market Development: JAFTA has focused on promoting both government and corporate bonds. From 2021 to 2025, government bonds accounted for nearly 80% of domestic capital mobilisation, while corporate bond issuance rose 1.8 times compared to the previous five-year period.

Green and Sustainability Bonds: Though still emerging, Vietnam’s green bond market has raised over VND 26.3 trillion (≈$1 billion) from 2021 to November 2025, covering sectors including banking, real estate, energy, and manufacturing.

Capacity Building: Since 2014, the Japanese Financial Services Agency has trained young officials from Vietnam’s State Bank and State Securities Commission through programs at Japan’s Global Financial Cooperation Centre. Many participants now hold key roles in Vietnam’s financial sector.

Legal and Regulatory Support: Technical assistance includes policy advice and development of legal frameworks for managing the bond market, helping restore investor confidence after past market volatility.

Operational and Strategic Implications

Expanded Funding Channels: Government and corporate bonds serve as key mediums for capital mobilisation, providing opportunities for domestic and international investors.

Market Transparency and Governance: Continuous improvements to legal frameworks support reliable issuance, trading, and settlement practices.

Investor Base Diversification: Targeted support fosters a broader investor base and encourages sustainable investment products.

Financial Sector Capacity: Trained officials and strengthened institutional frameworks enable more efficient market oversight and development.

Deputy Minister of Finance Do Thanh Trung emphasized that Vietnam will continue to deepen the bond market to meet capital needs for development, aiming for a transparent, efficient, and balanced market structure.

This milestone reflects a two-decade effort to integrate technical support, capacity building, and regulatory development, reinforcing Vietnam’s bond market as a central component of its financial infrastructure. For international financial institutions, this offers a clearer operational environment and a growing opportunity set in Southeast Asia’s emerging markets.