Category: Vietnam Bond News

The bulk of these corporate bonds were issued to Vietnam’s banks which is inline with observations in July that a shift is taking place. Specifically, corporate bond debt looks to be moving from the real estate and construction sectors across to the banking sector which would fit with the broader narrative around real estate firms struggling to access capital.

Of note, back in 2022, the construction sector dominated bond issuances, accounting for about 52.30 percent of bonds issued by the end of July that year. Banking on the other hand accounted for just 2.17 percent. At the end of July this year, however, banking accounted for 67.2 percent of the bonds issued whereas construction accounted for just 2.8 percent.

This is part of a wider push to improve the quality of Vietnam’s corporate bond market after a number of high profile cases of fraud were revealed. For example, in 2022, Hanoi-based developer of luxury apartment projects, Tan Hoang Minh,  was alleged to have defrauded investors of up to VND 10 trillion though corporate bond issuances…

Of note, deposit interest rates have been rising alongside loans issued by the State Bank of Vietnam to local banks through open market operations–there are currently VND 22,765 billion or US$895.5 million worth of these loans outstanding. It’s also worth noting that credit growth jumped significantly in June reaching 4.45 percent by the 24th. This was significant in that at the end of May credit growth was just 2.41 percent…

Of note, bond market reforms issued at the end of 2022 resulted in the bond market freezing up with issuances reduced to a trickle. These reforms were then put on hold in March of 2023 and the bond market bounced back. They did, however, come to an end at the end of last year and this looks to be reflected in bond issuances in the first six months of the year which have been lacklustre at best– at least they were until June…

Vietnam had just US$115 billion worth of outstanding government, corporate, and central bank bonds, in the first quarter of this year, according to the Asian Development Bank’s Asia Bond Monitor report for June. This is the lowest value of outstanding bonds among other key Southeast Asian economies. This could be a sign of economic prudence, however, it could also be a sign that Vietnam is under investing in its own development. That being the case, this could threaten Vietnam’s competitive edge in the region further down the track…

Most of these companies were in the real estate sector which fits with a broader narrative around the struggles of managing capital in the sector in recent years. For example, foreign investment has declined and consumer prepayments for residential real estate properties have dried up. This is part of much bigger challenges facing real estate in Vietnam that have been ongoing for years. This latest tranche of delayed bond payments would suggest it may go on a while longer too…

Of note, bond market reforms issued at the end of 2022 resulted in the bond market freezing up with issuances reduced to a trickle. These reforms were then put on hold in March of 2023 and the bond market bounced back. They did, however, come to an end at the end of the year and subsequently a renewed fall in bond issuances is playing out…

This is another positive sign for corporate bond issuances after a slow start to the year–there were just VND 5.96 trillion or US$242 million of corporate bonds issued in the first two months of 2024.

About VND 258.2 trillion or US$10.46 billion worth of corporate bonds in Vietnam are set to mature before the end of this year, The Saigon Times is reporting. The real estate industry will account for about US$4 billion or 38 percent with the banking sector a distant second account for

Up to 100 firms that have issued corporate bonds have failed to meet their repayment obligations to investors. These firms represent 19 percent of Vietnam’s corporate bond debt with delayed payments from January to November totalling US$7.92 billion, according to The Investor. Despite bond market reforms throughout the year and

Vietnam’s outstanding bonds hit US$108.6 billion in the third quarter of this year, representing 3.9 percent growth over the previous quarter, Vietnam New is reporting citing an ADB report. Corporate bonds, however, contracted 3.1 percent with the State Bank of Vietnam issuing US$13.5 billion worth of treasury bills to prop