Vietnam’s corporate bond market is regaining momentum after a difficult period. A domestic report notes that after stagnation in 2022–2023, the market has gradually recovered since 2024, but investor confidence has not been fully restored and liquidity has not truly improved. Another update describes the rebound as being led by banks and selective real estate issuers, supported by rising funding needs while maturity pressures build. The mix of recovery and caution frames the central challenge: restoring trust through more predictable issuance, clearer risk differentiation, and a market structure that can refinance upcoming maturities without repeating past stress.
Issuance data shows both progress and volatility. VIS Rating said new issuance in July fell 80% month-on-month to 26 trillion VND (994 million USD), the lowest level in five months. That drop followed three months of acceleration, rising from 44 trillion VND in April to 55 trillion VND in May and 132 trillion VND in June. Even during the July slowdown, banks dominated new supply, accounting for 79% (about 21 trillion VND), while residential property developers contributed 11% and other sectors 10%. Private placements remained the main channel at 80% of issuance, versus 20% via public offerings.
Trust Signals: Longer Tenors, Active Trading, and Clear Pricing Gaps
Several market signals point to a measured rebuilding of confidence. Newly issued bonds in July had longer maturities, with average maturity rising to 5.5 years from 5.1 years in June. Bonds with five-to-10-year maturities accounted for 69% of issuance, while three-to-five-year terms made up 30%. Pricing also showed clear sector differentiation: the average coupon on bank bonds was 8.7%, compared with 12.5% for residential property bonds. Secondary-market activity improved substantially, with average daily trading value reaching 8.1 trillion VND in July, up 44% month-on-month, concentrated in property, banking, and transport issuers.
The market’s outstanding size and maturity profile explain why confidence remains tied to refinancing capacity. As of July, outstanding corporate bonds stood at nearly 1.5 quadrillion VND. Private-placement bonds accounted for over 1.3 quadrillion VND, while publicly offered bonds represented 180 trillion VND. Banks were the largest issuers by outstanding value at 670 trillion VND, followed by residential property developers at 452 trillion VND. On remaining maturity, 589 trillion VND had one-to-three years left, 335 trillion VND had less than one year, 171 trillion VND had three-to-five years, and 392 trillion VND had more than five years remaining.
Outlooks from market observers underline the path ahead for the Vietnam corporate bond market recovery. FiinRatings said the market made “meaningful and noteworthy progress,” with 2025 primary issuance growing more than 35% year-on-year, and it expects momentum to be sustained at 20%–30% in 2026. The same commentary warned that refinancing risk was exposed in 2022–2023, when corporates with stable operations and healthy cash flow still missed payments due to over-reliance on short-term funding in a volatile market. FiinGroup also noted that primary issuance continued recovering in April, with real estate emerging as the primary driver, while repayment pressures intensified.
What is driving the recent rebound in Vietnam’s corporate bond market?
How did corporate bond issuance change from April to July?
What does the outstanding market size and maturity wall look like as of July?
How is the Vietnam corporate bond market recovery showing up in secondary trading?
What growth expectations did FiinRatings publish for issuance momentum?
