Banks absorb lion’s share of capital
After a quiet spell that lasted two years, the corporate bond market has taken a positive turn. According to the Vietnam Bond Market Association (VBMA), as of July 25, total issuance value had reached VND286.9 trillion (US$10.9 billion). This included 14 public offerings worth VND27.9 trillion ($1 billion), accounting for 9.7 percent of the total, while the remainder comprised 226 private placements valued at VND259 trillion ($9.9 billion), making up the dominant 90.3 percent.
Statistics from MBS Securities show that the banking sector has been the most active, accounting for 75 percent of the total issuance value with nearly VND198.5 trillion ($7.6 billion) – a staggering 131 percent increase year-on-year. Major issuers include MBBank, Techcombank, ACB, and BIDV.
According to analysts at MBS Research, this trend reflects the banking sector’s urgent need for more medium and long-term capital, especially as credit growth has unexpectedly accelerated, estimated to be growing 1.3 to 1.5 times faster than capital mobilization from deposits.
Director Nguyen Dinh Duy of Vietnam Investors Service and Credit Rating Agency JSC (VIS Rating) agrees that this growth gap is the primary reason banks are flocking to the bond market. VIS Rating forecasts that banks will continue to lead the charge, with issuance plans for the year potentially reaching nearly VND200 trillion ($7.6 billion) in the context that the State Bank of Vietnam has just increased the credit limit for banks.
Dr Le Duy Binh of Enocomica Vietnam noted that corporate bonds are a highly effective tool for banks to restructure their capital sources, improve safety ratios, and meet the economy’s long-term credit demands. However, he cautioned that to issue effectively, banks must have clear plans for the capital and maintain transparency to build investor confidence.
Real estate follows suit
Going after the financial sector, real estate bonds are also staging a positive recovery. According to VBMA, property developers issued approximately VND43 trillion ($1.6 billion) in bonds during the first half of 2025, an 11-percent increase from the previous year, with an average interest rate of 10.5 percent per year.
While the volume of bonds maturing in the first half of the year was relatively low at VND56 trillion ($2.1 billion), the second half presents a bigger challenge, with an expected VND131.6 trillion ($5 billion) in maturities.
The real estate sector accounts for 53 percent of this, or around VND70 trillion ($2.7 billion). According to data provider FinnGroup, this pressure peaked in July at VND17.5 trillion ($667 million) and is expected to ease in the coming months.
However, experts believe the pressure is not as severe as the time of the market’s most difficult period in 2023. The property sector is now benefiting from a more favorable macroeconomic environment, including controlled inflation and low interest rates.
“Legal and institutional bottlenecks are gradually being dismantled”, commented Dr Can Van Luc, Chief Economist at BIDV. “Many developers can now manage their cash flow by boosting sales or transferring projects to pay off their debts to bondholders.”
Dat Xanh Real Estate Services JSC – Financial and Economic Research Institute (DXS-FERI) also identified this year as a pivotal moment for a new recovery cycle in real estate, giving developers the confidence to tap the bond market for fresh capital in the upcoming time.
Mobilizing $245 billion for infrastructure
Looking ahead, the corporate bond market is set to play an even more critical role. According to a report by VIS Rating and the Credit Guarantee and Investment Facility (CGIF), Vietnam aims to mobilize approximately $245 billion for key infrastructure projects by 2030. With the state budget able to cover only about 70 percent of this need, corporate bonds must become the primary channel for long-term capital.
Recent market reforms, including enhanced information disclosure and the application of credit ratings and guarantees, are laying the foundation for greater investor participation. Legal reforms are being promoted to clear the way for this market towards the goal of attracting stronger private capital flows in the coming period.
In a particularly significant development, a new decree on infrastructure bonds is expected to be a game-changer, as it will permit the public issuance of infrastructure bonds even without a prior financial track record, further unlocking private capital for national development.
