Vietnam’s bond market heats up as major corporates return
By
Ngcc Diem, Thai Ha
Sat, October 25, 2025 | 9:33 am GMT+7
Vietnam’s corporate bond market is regaining momentum as large conglomerates join banks and brokerages in successful issuances.
From September 29-30, Vingroup JSC (VIC) raised a total of VND6 trillion ($228 million) through two domestic bond tranches. The 24-month bonds, maturing in 2027, are secured, non-convertible and non-warrant, carrying a fixed coupon of 11% per year. Proceeds will be used for debt restructuring.
Separately, Vingroup is preparing to issue up to $325 million of international bonds. The notes will be unsecured, non-convertible, and non-warrant, but come with an option to convert into shares of its subsidiary Vinpearl JSC (VPL).
The bonds, carrying an expected coupon of 5.5%, will be listed on the Vienna Stock Exchange and not offered or traded in Vietnam.
Illustration of Landmark 81 Tower at Vinhomes Center Park, developed by Vinhomes – a subsidiary of Vingroup – in HCMC. Vingroup is preparing to issue up to $325 million of international bonds.
Ha Long Sun Co. Ltd., a member of major developer Sun Group, which develops a VND72 trillion ($2.74 billion) project in Dong Nai province, raised VND408 billion ($15.51 million) via a private placement issue of bonds on October 16, maturing on October 10, 2030.
The company resumed issuance in July after a three-year pause, and has so far sold four tranches worth a combined VND1.29 trillion ($49.12 million) with maturities from two to five years and mixed coupons.
Between October 13 and 14, four other issuers raised a total of VND24 trillion ($912.37 million) through five bond tranches, with maturities of 12-36 months and coupons ranging from 8.95% to 9.8%.
These included Truong Minh Real Estate Investment and Development Co. (VND4.5 trillion), Hai Dang Real Estate Investment and Development Co. (VND3.8 trillion), Hung Phat Invest Hanoi Co. (VND7.65 trillion), and New Era T&T JSC (two tranches totaling VND8.05 trillion).
Other property developers issued smaller amounts, including Khai Hoan Land Group (VND80 billion), Thu Thua Industrial and Urban Development JSC (VND100 billion), and Ba Ria-Vung Tau Housing Development JSC (VND300 billion).
Most new issuance used for debt rollover
According to S&I Ratings, VND432.5 trillion ($16.44 billion) worth of bonds were issued in the first nine months of this year, up 37% from a year earlier.
In the third quarter alone, there were 155 corporate bond issuances, including 154 domestic deals worth VND156.1 trillion and one overseas issue from VPBank worth $300 million.
However, most issuances were aimed at debt rollover or capital replenishment, with limited new capital demand. The corporate bond market remains small, equivalent to just 7.8% of total banking credit or about 11% of GDP, and continues to expand more slowly than credit and equities.
S&I Ratings expects that gradual improvements in the regulatory framework will help rebuild investor confidence and support both the scale and quality of the market.
Coupon rates among banks have begun rising after bottoming out earlier this year, averaging 6.18% in Q3 versus 5.81% in Q2 and 5.95% a year earlier – the highest in six quarters, according to S&I Ratings.
Most major banks, including Techcombank, ACB, MBBank, VPBank, TPBank, OCB, MSB, SHB, Nam A Bank, and Bac A Bank, reported higher coupon rates compared to the previous quarter and extended average maturities from 5.6 to 5.9 years, reflecting stronger funding needs as credit growth accelerates while policy rates remain low.
In contrast, coupon rates have fallen among many real estate and manufacturing issuers, down by 50-150 basis points. Over the past year, real estate firms such as Vingroup and Vinhomes cut rates from 12.5% to 11%, TCO Real Estate from 9.6% to 9%, AAC from 10% to 9.1%, and Van Phu Invest from 11% to 10%.
Similar declines were seen in non-bank financial firms such as Techcom Securities (7.92% to 7%), Bao Minh Securities (10% to 8.5%), and F88 (11% to 10%). Manufacturers including Vietjet and Thanh Thanh Cong-Bien Hoa also saw lower coupon trends.
Analysts said improving business conditions and a recovering property market – aided by new legal reforms – have strengthened corporate credit profiles and repayment capacity across several sectors.
