Development of the sovereign GSS bond market and the role of sovereign credit ratings: International experience and implications for Vietnam

This study analyzes the development of the sovereign Green, Social, and Sustainability (GSS) bond market and the role of sovereign credit ratings in governments’ ability to mobilize green capital. The study uses a dataset of 31 countries over the period 2018 - 2023, combined with descriptive statistics and data visualization methods to evaluate issuance trends, as well as the relationships between sovereign credit ratings, environmental expenditure, and the scale of sovereign GSS issuance. The results show that the sovereign GSS market experienced strong growth during 2018–2021 before slowing down due to tighter global financial conditions. In addition, countries with higher credit ratings tend to issue larger volumes of GSS bonds thanks to advantages in borrowing costs and access to international investors. Based on these findings, the study proposes several policy implications to support the development of the GSS bond market in Vietnam.