Tag: corporate bond

Data from the Vietnam Bond Market Association revealed that in May, the whole market saw 42 separate bond issuances totaling VND46.77 trillion ($1.78 billion).

Banking sector accounting for the largest proportion with 67.1%.

The banking sector was the largest issuer.

The coprate bond market of Vietnam currently estimated at $47 billion.

Real estate companies account for 67% of total issuances in the opening month of the year.

Ministry to regularly monitor market to identify infringements.

Ministry of Finance required to adopt measures to ensure the effective operations of the market.

Data from FiinRatings shows that outstanding corporate bonds as of the end of September totaled more than VND1.3 quadrillion ($53 billion), or more than 13 per cent of 2021 GDP. Non-banking enterprises have VND908.8 trillion ($37 billion) and real estate enterprises VND455 trillion ($18 billion). This accounts for only 4 per cent of total credit in the banking system.

According to the Vietnam Association of Realtors (VARs), in the long run, corporate bonds will remain an effective capital mobilization channel. Compared to other countries in the region, the size of Vietnam’s corporate bond market is still quite modest. It is therefore necessary to adopt synchronous and effective solutions for the market’s healthy development.

The Ministry of Finance (MoF) plans to speed up the establishment of a secondary market for individual corporate bonds and supplement regulations on credit ratings, to prevent overheating and risks in the corporate bond market.

With low interest rates on corporate bonds, banks have taken advantage of restructuring old debts and issuing new bonds as well as increasing bond purchases ahead of time to meet the State Bank of Vietnam (SBV)’s capital ratio regulations.

The value of corporate bond issuances by consumer goods enterprises in October stood at VND7.284 trillion ($320.48 million), accounting for 21 per cent of the total value and putting it in second place, surpassing the banking group but behind the real estate group.

Forty-two corporate bond issuances were conducted in September, mobilizing VND29.734 trillion ($1.3 billion). The real estate group attracted VND8.394 trillion ($369.56 million) in private placements with high interest rates. Experts, however, have warned that this may be the beginning of a “Vietnamese Evergrande”.