In August 2024, issuing organizations might not be able to timely redeem an estimated 40% of corporate bonds that fall due. The more concerning issue is that the majority of these bonds were issued via private placement, with key bondholders being credit institutions and securities companies. To achieve the goal of expanding the corporate bond market to 30% of GDP by 2030, certain priorities must be addressed immediately. Lots of sand but little gold After one year of operation, the trading system for bonds issued through private placement at the Hanoi Stock Exchange has recorded 1,146 bond codes from 301 issuing companies, with a total registered trading value of around VND830 trillion. However, only 50% of the issuing organizations have conducted transactions, and only 38% of bond codes have been traded. Moreover, about 70% of the traded bonds either lack sufficient information for valuation or fail to meet standards. Consequently, the bonds that can be considered “qualified” account for just over 10% of the registered trades. But the biggest worry in the corporate bond market is the potential inability to meet redemption deadlines. According to VIS Rating, a significant percentage of corporate bonds that will become due in the next […]