Japanese embassy marks 20 years of Japan-ASEAN bond market support

On November 28, the Japanese embassy in Vietnam held a ceremony to celebrate 20 years of Japan–ASEAN Financial Technical Assistance (JAFTA) aimed at promoting Vietnam’s bond market, while underscoring broader cooperation across the financial sector. Beyond bonds, collaboration has expanded to multiple areas, with Japan International Cooperation Agency (JICA) providing technical support to develop Vietnam’s stock market since 2019, and FTSE Russell recently announcing an upgrade in its assessment of the Vietnamese market.

“I am very pleased to see the close and ongoing cooperation between the Japanese Ministry of Finance and our Vietnamese partners,” said Ito Naoki, Japanese Ambassador to Vietnam. “The Vietnamese Ministry of Finance and the State Securities Commission have played a key role in the impressive development of the bond market. Capital mobilisation through government and corporate bonds has grown substantially compared to 20 years ago.”

Since 2014, the Japanese Financial Services Agency has run a scheme to train promising young officials from the State Bank of Vietnam and the State Securities Commission at the Global Financial Cooperation Centre in Japan. Many of the officials who have completed this programme are now actively contributing to Vietnam’s financial sector.

Vietnam has identified financial market development as a key driver for achieving double-digit growth from 2026 onwards. The Japanese government supports this strategy through targeted initiatives, including advancing financial markets and fostering the development of international financial centres in Ho Chi Minh City and Danang.

Expanding the financial market and diversifying funding sources for both the government and enterprises remain crucial for Vietnam’s sustained economic growth.

“We will continue supporting Vietnam’s economic development in the financial sector through the bond market under JAFTA, the securities market with JICA’s support, and the activities of private financial institutions,” added Ambassador Naoki.

Addressing the event, Do Thanh Trung, Deputy Minister of Finance, said, “The Japanese Ministry of Finance has provided long-standing technical support for Vietnam’s bond market through the ABMI initiative under ASEAN+3 financial cooperation. Our Ministry began receiving assistance in 2005, has completed 11 phases, and is now implementing phase 12.”

Currently, the main beneficiaries of the technical assistance programme are the State Securities Commission and the Department of Financial Institutions. Support focuses on policy advice and the development of legal frameworks and regulations for managing the domestic bond market, including both government and corporate bonds.

Deputy Minister Trung noted that the market continues to expand, particularly the government bond segment, which serves as a key medium- and long-term channel for capital mobilisation to fund the budget and development projects. Government bonds accounted for nearly 80 per cent of domestic capital mobilisation between 2021 and 2025 and play a critical role in restructuring public debt towards sustainability.

The corporate bond market has also grown significantly, with the volume of individual bonds issued from 2021 to 2025 rising 1.8 times compared with the previous period.

Although still in its early stages, the green bond market has delivered notable results. From 2021 to the end of November 2025, enterprises across banking, real estate, energy, and manufacturing issued green and sustainability-linked bonds in both domestic and international markets, raising over VND 26.3 trillion (more than $1 billion).

At the same time, rapid improvements to the legal framework have helped restore investor confidence following a period of market volatility.

“The Ministry of Finance will continue to deepen and broaden the bond market to meet the country’s capital needs for economic development. This includes balancing supply and demand, expanding the investor base, enhancing the scale and quality of operations, and fostering a market that is open, transparent, and efficient,” added Trung.

Strengthening Vietnam-Japan cooperation in training personnel and developing the semiconductor supply chain is expected to significantly accelerate the growth of the industry.

Deputy Minister of Finance Do Thanh Trung held a meeting with Takebe Tsutomu, Special Advisor of the Japan-Vietnam Parliamentary Friendship Alliance on March 12, to discuss and boost the building of the Vietnam-Japan University project.

Vietnam is pushing efforts to enhance its supporting industries and accelerate digital transformation in manufacturing, with the upcoming Vietnam Manufacturing Expo (VME 2025) and the Vietnam-Japan Supporting Industries Exhibition (SIE 2025).