Along with the development of the economy and capital market, the Vietnamese bond market, primarily the government bond market (GBM), has seen strong growth in recent years. It has become a key channel for raising capital for the investment and development of the Government, policy banks, and local authorities, and offers a safe and efficient investment option for investors. Government bonds also constitute the largest and most significant portion of Vietnam Social Security's investment portfolio.

 Ngo Thi Bich Hạnh (fourth from the left) – Director of Vietnam Social Security’s Department of Fund Investment represents the Department to receive the Certificate of Merit from the Minister of Finance

According to Director of VSS’s Department of Fund Investment Ngo Thi Bich Hanh, during the 2009-2016 period, the investment activities of Vietnam Social Security's funds were primarily conducted through lending to the State Budget and purchasing government bonds. The scale of these loans and bond purchases has continuously expanded over the years. To date, Vietnam Social Security is the largest investor in the government bond market, assisting the Government in raising capital domestically and reducing foreign debt.

The conversion of State budget loans into government bonds has allowed the Ministry of Finance to centralise the management of State budget loans, including separate government bonds, auctioned bonds, and bonds acknowledged as debt from Vietnam Social Security. Currently, the State Treasury is the sole entity managing these loans. Additionally, since 2017, Vietnam Social Security has gradually transitioned the method of investing in government bonds from private placements to market auctions through market makers on the electronic system of the Hanoi Stock Exchange (HNX), ensuring transparency in State budget loans and aiming for safe and sustainable public debt management.

In recent times, Vietnam Social Security has diversified the maturities of its government bond investments, including 5-year, 10-year, and 15-year terms, with appropriate proportions. The total investment volume of Vietnam Social Security in these three maturities holds a significant proportion.

In 2023, the total volume of government bond investments by Vietnam Social Security accounted for nearly 50 per cent of the total investment volume of the entire market for these maturities. The diversification of investment maturities by Vietnam Social Security enhances the sustainability of the government bond portfolio in the market, reduces repayment pressure on the State budget, and contributes to the restructuring of public debt in line with the policies of the Party and the State.

 Vietnam Social Security is recognised by the Ministry of Finance as a Top 10 Government Bond Market Maker

Of note, Vietnam Social Security is a major investor in the primary market, providing medium- and long-term capital. This has contributed to extending the maturity of the government bond portfolio, increasing demand in the primary market, enhancing the attractiveness of bond issuances, expanding the capital market, and indirectly promoting the country's socio-economic development.

"Particularly during the challenging period of the COVID-19 pandemic and the subsequent economic recovery, VSS participated in almost all primary market auctions, helping maintain the regular operation of the primary market and stabilise issuance interest rates," said Director of Vietnam Social Security’s Department of Fund Investment Ngo Thi Bich Hanh.

For its contributions to the government bond market, at the conference summarising 15 years of operation and development of the government bond market, Vietnam Social Security received the Ministry of Finance's award as one of the "Top 10 Government Bond Market Makers in Vietnam".

In the context of Vietnam's extensive regional and international integration, to achieve its goal of contributing to social security, progress, and social equity, Vietnam Social Security is actively improving its management efficiency and ensuring the financial safety of its funds, aiming for long-term fund balance. This not only contributes to growth and social security but also helps stabilise the market and support economic development goals, significantly contributing to Vietnam's sustainable development./.