Bank bonds continue to lead the market in June 2025, when credit growth far exceeds mobilization, credit institutions are stepping up issuance
Real estate bonds show positive signs thanks to legal solutions
According to the report "Bond Focus June 2025" by FiinRatings - a strategic partner of S&P Global, the corporate bond market in June continued to grow strongly, especially the banking group.
In the first 6 months of the year, credit in the whole economy increased by 9.9%, far exceeding the growth rate of deposits. This gap forced commercial banks to issue large amounts of bonds to increase Tier 2 capital, thereby ensuring capital safety ratios as well as important liquidity indicators such as LDR (credit balance/capital mobilization) and short-term capital utilization ratio for medium and long-term loans.
In June alone, the total value of corporate bond issuance reached VND105.5 trillion, up 52.4% over the previous month, all of which were private issuances. In the first 6 months of the year, the total issuance value reached VND248.6 trillion, up 71.2% over the same period in 2024. Of which, credit institutions accounted for 76.3% - equivalent to nearly VND190 trillion.
Along with that, real estate bonds also showed positive signs thanks to legal solutions. The total issuance value of this group reached about 39.6 trillion VND in the first half of the year, accounting for 67.3% of the non-financial group, equivalent to nearly 24% of total issuance.
Despite strong growth, issuance is still mainly through private placement. Public offerings only reached nearly VND28 trillion, equivalent to 76.8% of the whole year 2024. However, only commercial banks and two securities companies issued bonds through public offerings.
Low interest rates, active buybacks but still need to note potential risks
Another notable point is that the interest rate environment continues to be strongly supportive of the bond market. The average nominal coupon rate fell from 7.43% to 6.69% across the market. Of this, 64% of the issuance volume was fixed rate, 22% was floating rate and the rest was a combination.
Bond repurchase activities increased sharply, with the transaction value in June 1.2 times higher than the previous month. The total repurchase value in the first 6 months of the year increased by 42.7% compared to the same period last year. However, debt repayment pressure is still high as the maturity value in the last 6 months of the year is estimated at VND125 trillion, especially for the non-financial issuer group.
In the secondary market, transactions in June reached nearly VND137.1 trillion, an average of VND6.53 trillion/day - an increase of 13.4% compared to the previous month. The banking and real estate groups accounted for nearly 71% of the total transaction value. Notably, the real estate group recorded a 37.6% increase in transaction value compared to the same period in 2024.
However, risks still exist. In the first 6 months of the year, 23 trillion VND of corporate bonds were recorded as "problematic", down 31% compared to the same period but still worrying.
Notably, experts assessed that the new legal framework helps improve the quality of market management when from July 1, 2025, the revised Enterprise Law officially takes effect, including important regulations on the debt/equity ratio for enterprises issuing individual bonds - not exceeding 5 times, including the capital from the expected bond lot issued. This regulation helps increase the quality of goods on the market and reduce the risk of widespread issuance.
At the same time, some businesses will be forced to switch to public offerings to comply with the new regulations.
Although the size of Vietnam’s corporate bond market is expected to reach 140 billion USD by 2025, green bonds will account for less than 1%. To increase this proportion, Vietnam needs a clear strategy, with transparent tools and policies, and effective incentives to attract investors to projects that minimize the impact of climate change.
Vietnam has a Strategy for Carbon Market Development in Vietnam approved under Decision No. 232/QD-TTg dated January 24, 2025. The Government leaders have approved the Project on Establishing and Developing the Carbon Market in Vietnam. The main objective of the Project is to establish a carbon market to support the implementation of greenhouse gas emission reduction targets, promote the transition to a green economy and enhance business competitiveness.
Recently, on July 4, 2025, the Prime Minister issued Decision 21/2025/QD-TTg stipulating environmental criteria and confirming projects in the green classification list. This is considered an important initial step to promote green finance in Vietnam.
Banks and credit institutions – as bond issuers and green credit providers – need to develop clear appraisal processes, train staff, and apply international standards. At the same time, businesses must proactively complete their dossiers, assess environmental impacts, and have transparent internal monitoring mechanisms.
However, experts say it is necessary to promote the role of domestic credit rating organizations licensed by the Ministry of Finance. Meanwhile, in the world, most green bonds are accompanied by a third-party assessment (second-party opinion) or independent verification.
Mr. Le Hoang Tung - Deputy General Director of Vietcombank - shared: This bank has successfully issued VND 2,000 billion of green bonds in 2024, complying with both international standards and domestic regulations.
Vietcombank identifies sustainable development as a long-term goal, and ESG will be integrated into all activities. The bank is implementing refinancing from green bonds and developing green consulting services, helping businesses access carbon credits.
Mr. Nguyen Thang Long (Department of Financial Institutions, Ministry of Finance) said that the Prime Minister has approved the Carbon Market Strategy, with the goal of successfully piloting it by 2027 at the latest. Accordingly, banks such as Vietcombank will play a central role in payment and lead market activities.
Mr. Minh
Source: https://baochinhphu.vn/tin-dung-tang-cao-trai-phieu-duoc-mua-102250714180912443.htm
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