Hanoi Plans Up to $7.8B Bond Issuance with Top Banks for Urban Rail Expansion

Hanoi has signed Memorandums of Understanding with five major commercial banks to support the issuance of local government bonds, aiming to raise between $6 billion and $7.8 billion from 2027 to 2030. The proceeds are designated for key infrastructure projects, with a primary focus on the capital's urban railway network.

The signing ceremony was held on June 29 as part of the Hanoi Capital Master Plan Announcement and Investment Promotion Conference 2026. The event was attended by Nguyen Xuan Luu, Vice Chairman of the Hanoi People's Committee.

Speaking at the conference, Luu noted that Hanoi had unveiled its 100-year Capital Master Plan on the same day, which outlines a vision to develop the city into a green, smart, and modern metropolis and a leading centre for culture, innovation, and international integration.

"Delivering these long-term objectives would require substantial investment, especially for urban railway development," Luu stated. "Hanoi, therefore, aims to diversify its financing sources and make full use of the special policy mechanisms granted by the central government to mobilise private-sector capital. In this context, local government bonds will become an important financial instrument for the city's development."

During the ceremony, the Hanoi Department of Finance formalised cooperation agreements with Agribank, VietinBank, BIDV, Vietcombank, and MB. These partnerships will facilitate the preparation and execution of future bond issuances.

Under the agreements, Hanoi intends to issue a variety of debt instruments between 2027 and 2030, including local government bonds, project bonds, infrastructure bonds, municipal bonds, and green bonds. The capital raised will primarily finance strategic investment projects, particularly the expansion of the city's urban railway system.

The participating banks will collaborate with the Hanoi Department of Finance to develop issuance plans, evaluate market demand, and provide a suite of services. These services include financial advisory, underwriting, issuance agency, distribution, and bond auctions, all in compliance with current regulations. The parties will also cooperate on promotional activities to attract a broader investor base and enhance fundraising efficiency.

Luu urged the Department of Finance to work closely with the banks to design the issuance framework, ensuring full legal compliance so that future offerings are conducted with transparency, efficiency, and in line with the city's fiscal capacity. He also called upon the five banks to act as strategic partners by providing market analysis, investment advice, and support in structuring bond products that align with investor demand.

According to Luu, the cooperation is expected to mobilise financial resources more effectively to advance Hanoi's long-term goal of becoming a "Civilised, Cultured and Modern" capital while pursuing rapid and sustainable development.