Vietnam corporate bond market shifts toward quality amid rising overdue payments

Vietnam's corporate bond market is entering a new phase of screening, prioritizing quality and capital management discipline over rapid growth. Data from KIS Vietnam Securities shows that total bond issuances in July reached 26,295 billion VND, an 80% decrease from the previous month.

Banks continue to dominate the market, accounting for 78% of total issuances with 20,656 billion VND. The real estate sector followed with 3,000 billion VND, representing 11.4% of the total. While real estate issuance decreased compared to the previous month, it saw a 173% increase compared to the same period last year, led by Vinhomes.

Conversely, payment obligations are a growing concern. Total overdue corporate bond payments in July rose to 7,985 billion VND, a significant increase from the previous month. In August, total bond maturities are estimated at 10,061 billion VND, with the highest pressure coming from the real estate and banking sectors.