Ha Noi teams up with five banks to raise up to $8 billion through bond issuance for Capital Master Plan
VGP - The local authorities of Ha Noi signed memoranda of understanding (MoUs) with five major commercial banks to support future local government bond issuances, aiming to mobilize between US$6 billion and US$7.8 billion during 2027–2030 to finance strategic infrastructure projects, particularly the capital's expanding urban railway network.
The signing ceremony, Ha Noi, June 24, 2026
The agreements were signed on June 29 during the announcement ceremony for the Ha Noi Capital Master Plan and the 2026 Investment Promotion Conference, attended by Vice Chairman of the Ha Noi People's Committee Nguyen Xuan Luu.
Addressing the event, Luu said the newly announced 100-year Capital Master Plan sets out a vision of transforming Hanoi into a green, smart and modern metropolis, while strengthening its role as a leading center for culture, knowledge, innovation and international integration.
Achieving these ambitions, he noted, will require significant investment, especially in urban rail infrastructure.
To meet funding needs, Ha Noi plans to diversify its financing sources by leveraging the special policy mechanisms granted by the central government and attracting greater private-sector participation. In this strategy, local government bonds will serve as a key financing instrument.
Under the cooperation agreements, the Ha Noi Department of Finance will work with Agribank, VietinBank, BIDV, Vietcombank, and MB to prepare and implement bond issuances between 2027 and 2030. The city plans to issue a variety of instruments, including local government bonds, project bonds, infrastructure bonds, municipal bonds and green bonds, with total fundraising projected at US$6–7.8 billion.
Most of the proceeds will be directed toward major infrastructure projects, with priority given to the expansion of Ha Noi's urban railway system.
The five banks will collaborate with the Department of Finance to develop issuance strategies, assess market demand and fundraising capacity, and provide services ranging from financial advisory and underwriting to issuance management, distribution and bond auctions in line with prevailing regulations. They will also support investor outreach to broaden the investment base and enhance fundraising efficiency.
Nguyen urged the Department of Finance to coordinate closely with the participating banks in designing the bond issuance framework while ensuring full compliance with legal requirements to guarantee transparency, efficiency and fiscal sustainability.
He also encouraged the banks to continue serving as Ha Noi's long-term strategic partners by providing market intelligence, investment advisory services and expertise in structuring bond products that align with investor demand.
According to Nguyen, the partnership marks an important step toward mobilizing long-term capital for Hanoi's development, supporting the city's ambition to become a "Civilized, Cultured and Modern" capital while maintaining rapid and sustainable economic growth./.
