HCMC – Vietnam’s corporate bond market issued around VND322.1 trillion worth of privately placed bonds in the first eight months of this year, up 47.3% year-on-year, according to the Ministry of Finance.
A total of 66 firms participated in the market during the period. Banks were the dominant issuers, accounting for 70.4% of the total, followed by property developers with 20.8%. The remaining 8.8% came from other sectors, reported the Government’s news website (baochinhphu.vn).
Bonds backed by collateral made up VND67.1 trillion, representing 20.8% of the total.
The value of bonds bought back before maturity reached VND177.8 trillion, up 45.9% from the same period last year.
As of August 30, the total value of outstanding privately placed corporate bonds was around VND1.1 quadrillion, equivalent to 9.8% of the country’s 2024 GDP and 6.6% of total credit in the economy.
Institutional investors held the bulk of corporate bonds, with financial organizations and companies accounting for 81.9% of total holdings. The proportion held by individual investors fell to 18.1%, down 10 percentage points from the end of 2023.
Government bond issuance in the same period totaled VND238.7 trillion, meeting 47.7% of the year’s plan. The average maturity of government bonds fell to 9.98 years, down 1.14 years from the 2024 average.
The average coupon rate rose to 2.98% per year, up 0.46 percentage point compared to last year’s 2.52%. By the end of August, outstanding government bonds amounted to VND2.5 quadrillion, or 21.8% of GDP.
Social insurance agencies and insurance companies were the primary holders of government bonds, with a 62.1% share. Commercial banks held 37.1%, while securities firms, fund managers, and other institutions accounted for only 0.8%.
