The corporate bond market is expected to improve in 2025, with recovery driven more significantly by corporate bonds rather than bank bonds, which dominated the market in 2023. What opportunities and challenges lie ahead for this sector? 2024: A bank-driven market According to the Vietnam Bond Market Association (VBMA), the total value of corporate bonds issued from January to December 20, 2024 amounted to VND418,197 billion. This included 404 private placements worth VND368,083 billion, accounting for 92.3% of the total. This marks a 25% increase from 2023 and a 55% rise against 2022, reflecting a notable recovery in the corporate bond market. Nonetheless, a closer look shows that more than 70% of the bonds issued in 2024 originated from the banking sector, an upsurge from 58% in 2023. The real estate sector, which made up 22.5% of the 2023 figure, saw its shares diminish. Excluding bank-issued bonds, the total issue by other enterprises in 2024 appears lower than in the previous year, as investor confidence in the corporate bond market has yet to fully rebound. On a positive note, the slow repayment of principal and interest on bonds has improved since early 2024. Many enterprises have successfully negotiated extensions with […]

The corporate bond market is expected to improve in 2025, with recovery driven more significantly by corporate bonds rather than bank bonds, which dominated the market in 2023. What opportunities and challenges lie ahead for this sector? 2024: A bank-driven market According to the Vietnam Bond Market Association (VBMA), the total value of corporate bonds issued from January to December 20, 2024 amounted to VND418,197 billion. This included 404 private placements worth VND368,083 billion, accounting for 92.3% of the total. This marks a 25% increase from 2023 and a 55% rise against 2022, reflecting a notable recovery in the corporate bond market. Nonetheless, a closer look shows that more than 70% of the bonds issued in 2024 originated from the banking sector, an upsurge from 58% in 2023. The real estate sector, which made up 22.5% of the 2023 figure, saw its shares diminish. Excluding bank-issued bonds, the total issue by other enterprises in 2024 appears lower than in the previous year, as investor confidence in the corporate bond market has yet to fully rebound. On a positive note, the slow repayment of principal and interest on bonds has improved since early 2024. Many enterprises have successfully negotiated extensions with […]