Corporate bonds take on sharper focus

Vietnam's growing demand for long-term capital is bringing renewed attention to the role of the corporate bond market, with policymakers and market participants seeking to rebalance the country's financial structure.

- By Khanh Linh

The challenge of bank lending as the dominant funding channel, expected to become more pronounced in the coming years, was tackled by experts at the Vietnam Corporate Bond Market Forum on April 2 in Hanoi.

Total development investment could approach 40 per cent of GDP, the event heard, leaving an estimated annual gap of $20-30 billion in mediumand long-term capital that bank lending alone is unlikely to fill. In that context, the corporate bond market is increasingly seen as a necessary complement rather than an alternative, and its development is also supported by a favourable macroeconomic backdrop.

Kim Eng Tan, managing director for Asian Sovereign Ratings at S&P Global Ratings, said Vietnam continues to stand out as one of the region's more attractive investment destinations, underpinned by a stable business environment and ongoing infrastructure development.

"Following GDP growth of 8.05 per cent in 2025, the country is forecast to sustain an average annual expansion of around 6.7 per cent between 2026 and 2028," said Kim. "However, maintaining this trajectory will require substantial long-term capital, particularly for infrastructure, alongside careful management of fiscal pressures and external balances."