The corporate bond market has been under pressure in the last two months of 2024, with maturing bonds expected to amount to over VND65 trillion, accounting for nearly 10% of the remaining credit limit for the year. This poses a major challenge not only for issuers but also for the broader financial market. A surge in bond sales According to the Vietnam Bond Market Association (VBMA), corporate bond sales in the first 10 months of 2024 totaled VND332.85 trillion, a 42.9% increase over the same period last year. Of this, public debt issues amounted to VND28.85 trillion, up 21.4%, while those issued via private placement soared 4.5-fold to VND304 trillion. However, the total value of corporate bonds issued this year is expected to account for only 2.5% of the credit scale, down from 4.5-6% in 2019-2021. The banking sector dominated the corporate bond market, accounting for 72% of the total, up from 57% in 2023 and an average of 42% in 2019-2023. In contrast, the real estate sector’s share fell to 17% from 24% in 2023 and 26% on average in previous years. This shift reflects banks’ increased demand for long-term capital to comply with industry regulations, while sectors like […]
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