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Vietnam bond activity cools in October as demand for capital subsides

There were 21 corporate bond issuances through private placements, valued at VND 19,678 billion or US$787.12 million, alongside four public offerings worth VND 1,800 billion or US$72 million in October in Vietnam, according to Vietnam Bond Market Association data. Over the year-to-date, 316 private placements have been completed, totalling VND 304,000 billion or US$12.16 billion, and 15 public offerings reached VND 28,854 billion or US$1.15 billion.

Furthermore, corporate bond redemptions in October amounted to VND 12,772 billion or US$510.88 million, a decrease of 28 percent compared to the same month in 2023. With two months remaining in the year, VND 65,685 billion or US$2.63 billion in corporate bonds are due to mature, of which real estate bonds constitute the largest share, accounting for VND 26,255 billion or US$1.05 billion, or 40 percent of the total.

Of note, in October there was one instance of delayed interest and principal payments, totalling VND 2,658 billion or US$106.32 million.

Furthermore, the secondary market witnessed a surge in activity, with privately issued corporate bonds reaching a total transaction value of VND 121,223 billion or US$4.85 billion in October, averaging VND 5,271 billion or US$210.84 million per day. This marks a 14 percent increase compared to September.

See also: Vietnam’s Financial Sector: An Overview

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