The Vietnamese Finance Ministry is discussing a potential sovereign US dollar bond, which would be the country’s first offshore issuance since 2014, according to four people familiar with the matter.

The proposed borrowing could help finance infrastructure and other development projects as Vietnam targets annual economic growth of at least 10% through 2030. It could also ease pressure on domestic banks, which have been the main source of funding for investment, according to The Business Times. 

One international bank has advised Vietnam to issue a $1bn, 10-year bond, while another has proposed a similar maturity worth between $500mn and $1bn, with a coupon of about 7%, sources said.

No final decision has been made. Two Vietnamese officials said the ministry is assessing the cost of overseas borrowing amid higher global yields, elevated oil prices and persistent inflation. The ministry did not respond to a Reuters request for comment.

Vietnam has raised more than $9bn through domestic government bonds so far this year. Ten-year debt has carried an average coupon of 4.2%, up from 3.1% during the same period last year.

The country last entered international markets in 2014, when it raised $1bn through a 10-year dollar bond carrying a 4.8% coupon. It had previously issued offshore bonds in 2010 and 2005.

Vietnam’s public debt remains relatively modest, at about 37% of GDP last year. However, the government has traditionally been cautious about foreign borrowing.

That approach has begun to shift as Communist Party General Secretary To Lam pushes for faster economic expansion amid uncertainty surrounding global trade.

Vietnamese banks have faced funding pressures, with credit growth exceeding deposit growth since at least 2021. The State Bank of Vietnam raised the ceiling for private-sector foreign borrowing to $6.1bn this year, from $5.5bn in 2025.

Companies have also increased their use of overseas financing. VPBank secured a $1.4bn offshore loan in June, while conglomerate Vingroup issued $350mn in five-year bonds in April.

At government level, Vietnam has also agreed to accept development loans from Japan and Germany this year, signalling a greater willingness to tap foreign sources of capital.