The memorandum of understanding was signed on June 29 during the 2026 Hanoi Investment Promotion Conference and the announcement of the capital's 100-year master plan. Nguyen Xuan Luu, vice chairman of the Hanoi People's Committee, attended the signing ceremony between the Hanoi Department of Finance and five commercial banks.
Representatives of Hanoi sign a memorandum of understanding between the Department of Finance and banks (Photo: Hanoi City People's Committee).
Luu said Hanoi would require substantial investment to finance the capital's development over the coming years, particularly its urban railway network.
He said the city therefore needed to diversify its funding sources and make full use of special financial mechanisms approved by the central government to attract private investment. Local government bonds, he added, would be an important financing instrument.
The agreements were signed between the Hanoi Department of Finance and five lenders: Agribank, VietinBank, BIDV, Vietcombank and MB, paving the way for large scale capital mobilisation to support the capital's development.
Under the agreements, Hanoi plans to issue local government bonds between 2027 and 2030, targeting total fundraising of between VND 150 trillion and VND 200 trillion (approximately USD 5.8 billion and USD 7.7 billion).
The planned offerings include local government bonds, project bonds, infrastructure bonds, municipal bonds and green bonds.
The proceeds will be prioritised for major infrastructure projects, with a particular focus on expanding Hanoi's urban railway system.
The participating banks will work with the Hanoi Department of Finance to develop issuance plans, assess market demand and fundraising capacity, and provide advisory, underwriting, issuance agency, distribution and bond auction services in accordance with Vietnamese regulations.
The parties also agreed to strengthen communications and investor outreach to broaden the investor base and improve fundraising efficiency.
Luu expressed hope that the five banks would continue acting as strategic partners by providing market analysis, advisory services and suitable bond products to meet investor demand, helping Hanoi mobilise the financial resources needed to achieve its long term development goals.
