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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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Subscription Plans

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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Increasing pressure from bond maturities

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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Government lukewarm to cheap funds?

The pace of Government bond issuance remains slower than planned even though coupon rates are at near-historic lows. What is happening? Should the Government...

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