The slowdown in the corporate bond market—where banks supply the vast majority of such securities—reveals a striking dynamic within capital markets, especially against the backdrop of robust credit growth in the broader economy. Banks as dominant players According to a report by the Vietnam Bond Market Association, Vietnam’s corporate bond market expanded to VND1.27 quadrillion by the end of the third quarter—an increase of 6% compared to the end of 2024—and accounted for 7.4% of the country’s total outstanding loans. However, the market’s size has remained relatively stable since late 2023, hovering around VND1.2 quadrillion. This stagnation is largely attributed to a growing trend among businesses to repurchase bonds before maturity. In the third quarter alone, approximately VND93.3 trillion worth of corporate bonds were bought back early, marking a year-on-year increase of nearly 33%. In the final three months of 2025, over VND48 trillion worth of corporate bonds are set to mature, with the real estate sector accounting for 38% (approximately VND18.3 trillion) and the banking sector contributing 29% (nearly VND13.8 trillion). Notably, the value of corporate bonds issued in the third quarter of 2025 declined by 19% year-on-year, totaling just VND129.3 trillion. This decline underscores the ongoing difficulties facing […]