Corporate bond market surges in April, led by banks and real estate

Corporate bond market surges in April, led by banks and real estate

Việt Nam’s corporate bond market recorded a sharp rebound in April, with 33 new issuances totalling more than VNĐ46.3 trillion or US$1.82 billion.

An urban complex developed by VinGroup in Hà Nội. — VNA/VNS Photo

Việt Nam’s corporate bond market recorded a sharp rebound in April, with 33 new issuances totalling more than VNĐ46.3 trillion (US$1.82 billion), up 148 per cent month-on-month and 141 per cent year-on-year, according to the latest data from MBS Securities.

The surge was driven largely by the banking sector, which issued VNĐ32.6 trillion worth of bonds, accounting for 73.2 per cent of the monthly total. The real estate sector also re-emerged, raising nearly VNĐ12.5 trillion, or 17.1 per cent of the total value.

Noteworthy issuances during the month included Techcombank’s VNĐ13.5 trillion bond with a 24 to 36-month term and interest rates between 5.1 and 5.2 per cent. Vingroup issued VNĐ9 trillion in bonds with terms of 24 to 38 months and coupon rates ranging from 12 to 12.5 per cent. VietinBank followed with a VNĐ6.5 trillion issuance, offering 96 to 180-month terms and interest rates between 5.73 and 6.35 per cent.

From January to April, total corporate bond issuance reached over VNĐ71.4 trillion, a 58.7 per cent increase compared to the same period last year. The average weighted interest rate during this time was approximately 7.1 per cent, slightly lower than the 2024 average of 7.2 per cent. Public offerings saw especially strong growth, with 13 new issuances totalling VNĐ27.1 trillion—up 154 per cent year-on-year.

The banking sector continued to dominate the market, issuing nearly VNĐ52 trillion worth of bonds, almost four times higher than in the same period last year and accounting for 72.6 per cent of the total. The average interest rate was 6 per cent per year, with an average term of 4.84 years. Techcombank led the group with VNĐ13.5 trillion issued, followed by VietinBank with VNĐ10.5 trillion and Asia Commercial Bank (ACB) with VNĐ5.3 trillion.

Meanwhile, the real estate sector issued bonds worth nearly VNĐ12.5 trillion, a decrease of 41 per cent compared to the same period last year, but still representing 17.5 per cent of the market. The average coupon rate was 11 per cent per year with an average term of 2.72 years. Major issuers included Vingroup with VNĐ9 trillion, TCO Real Estate with VNĐ3 trillion and Oleco-NQ Co. Ltd with VNĐ490 billion.

Bond buybacks also picked up in April, with companies repurchasing over VNĐ12.1 trillion worth of bonds before maturity. This marked a 21.4 per cent increase from March, although still 6.3 per cent lower than the same period last year. Banks accounted for 53.3 per cent of the repurchased value, while real estate firms made up 28.5 per cent.

Cumulatively, firms bought back nearly VNĐ39.6 trillion in bonds during the first four months of 2025, down 15.5 per cent year-on-year. This was largely driven by a 65.2 per cent year-on-year increase in buybacks by real estate firms.

Despite the rebound in new issuances and repurchases, credit risks remain a concern. April saw three companies newly report delays in interest or principal payments, with a combined value of more than VNĐ721 billion. These companies were Tracodi Construction Group, BB Power Holdings and Hoàng Sơn 2 Energy Investment.

By the end of April, the total value of corporate bonds with overdue obligations was estimated at VNĐ209.6 trillion, equivalent to around 20 per cent of the market’s outstanding corporate bonds. The real estate sector continued to account for the largest share, making up approximately 69 per cent of the total overdue debt. 

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