There were 30 corporate bond issuance in June worth VND 42,147 billion or US$1.66 billion representing a more than two-fold increase over corporate bond issuances in May, according to data compiled by the Vietnam Bond Market Association. This brings the total value of corporate bond issuances at the halfway market in 2024 to VND 115,207 or US$4.53 billion, about 34 percent of the value of corporate bonds issued over the whole of 2023.
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.
That said, where Vietnam’s bond market was largely being driven by real estate in the past, this latest spike looks to have been driven by banking and finance instead with real estate bond issuances totalling just VND 1,800 or US$70.8 million.
See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked