Corporate bond market seeks deeper, more balanced growth

Despite signs of improving issuance activity, Vietnam’s corporate bond market remains marked by structural imbalances, limited investor access, and weak secondary liquidity.

- By Le Khanh

According to a market report for May 11-15 released by the Vietnam Bond Market Association, the market recorded six corporate bond issuance rounds worth a combined $219.2 million, with issuance activity concentrated mainly among property developers and banks.

Cumulative corporate bond issuance since the beginning of the year reached $3.78 billion. Of this, public offerings accounted for 16 issuance rounds worth $665.4 million, equivalent to 17.6 per cent of total issuance value. Meanwhile, private placements continued to dominate the market with 42 issuance rounds valued at $3.12 billion, representing 82.4 per cent of total issuance.

The dominance of the real estate sector remained particularly evident in the first quarter. A corporate bond market report released by VIS Rating on April 2 showed that real estate companies accounted for around 53 per cent of total issuance value during the period. The largest issuance came from Marina Center Investment, which issued nearly $408 million worth of 10-year bonds.

The recovery of property developers has not only been reflected in new issuance activity, but also in efforts to address outstanding obligations. Delayed bond payment resolutions have remained concentrated among issuers linked to the ecosystems of Novaland, Phuc Khang, and Sunshine.

Alongside real estate, banks continued to play a central role in maintaining market stability, particularly in the secondary market.