Vietnam’s corporate bond market set for a more positive 2026

Vietnam’s corporate bond market set for a more positive 2026

2026 is set to be a more positive and active year for Vietnam's corporate bond market, bolstered by an improving credit quality trend.

According to a report released by FiinRatings on January 14, Vietnam’s corporate bond market recorded a total issuance value of VND644.3 trillion ($24.53 billion) in 2025, up 35.5 per cent on-year. Among them, private placements accounted for 91.4 per cent, while public offerings remained modest, representing 8.6 per cent of total issuances.

Growth was driven primarily by the bank, real estate, and securities services sectors, while issuance activity among non-financial sectors remained limited.

Outstanding corporate bonds reached VND1.4 quadrillion ($53.3 billion), accounting for 11.4 per cent of GDP, still significantly below the peak level of 18.3 per cent of GDP during the 2020-2021 period and the 20 per cent target set by the government for end-2025.

In terms of issuance structure, the bank and real estate sectors continued to dominate, accounting for 66 per cent and 23 per cent, respectively, of total issuance value in 2025. Notably, issuance by the real estate sector recorded strong growth of 58 per cent, indicating a clear recovery.

Regarding the number of issuers, 122 corporates conducted bond issuances in 2025, bringing the total number of issuers with outstanding bonds to 321 as of December 31, 2025.

FiinRatings assesses that in 2026, Vietnam’s corporate bond market will continue to strengthen its role as an important medium- and long-term funding channel for the corporate sector. However, market growth prospects are expected to be increasingly linked to issuers’ ability to meet higher credit standards and transparency requirements, rather than relying on pure scale-driven expansion as seen in previous periods.

Corporate bond supply is projected to increase in 2026, mainly due to tighter bank credit conditions and a rising trend in bank lending interest rates, which are expected to encourage corporates to diversify their funding sources. Nevertheless, market access will become more polarised by credit quality and credit ratings, as issuers with high financial leverage, weak cash flows, or limited transparency may face greater challenges in accessing the bond market.

From a market quality perspective, the average credit quality of newly issued corporate bonds is expected to improve, supported by key changes in the regulatory framework. The introduction of financial leverage thresholds (with the liabilities-to-equity ratio capped at below five times under the amended Enterprise Law), the expansion of mandatory credit rating requirements for corporate bonds offered to individual investors (except for bank-issued bonds), along with stricter supervision of fund utilisation purposes and enhanced disclosure obligations, are expected to strengthen market discipline and mitigate systemic credit risks.

On the demand side, the development of the institutional investor base is a key factor supporting the medium-term stability of the corporate bond market. The establishment of new investment fund models under Decision No.3168 of the Ministry of Finance, the expansion of open-ended funds, and the integration of credit ratings into asset allocation and risk management frameworks are expected to enhance the market’s absorption capacity for issuances with strong credit quality. In parallel, clearer regulations governing professional individual securities investors, improvements in market infrastructure, and in particular the draft decree on private bond placements, which includes provisions related to fund utilisation purposes and the role of credit institutions in managing collateral assets, are expected to further enhance transparency and investor protection.

Overall, FiinRatings assesses the 2026 outlook for Vietnam’s corporate bond market as “very positive and active, with an improving credit quality trend”, despite ongoing risks related to rising funding costs, elevated credit differentiation across corporate segments, and issuers’ ability to adapt to new market standards.

VIR