Vietnam financial markets face debt pressures and liquidity shifts

Vietnam's financial markets are experiencing varied pressures across the bond, stock, and banking sectors. According to VIS Rating, the corporate bond market in Q3 2026 saw a slight recovery, with primary issuances reaching 172 trillion VND. While the banking sector drove growth—accounting for 66% of issuances—the real estate sector faced significant debt pressures, with many firms struggling with late payments.

In the banking sector, KienlongBank has successfully completed three rounds of bond issuances to raise capital for lending, while other institutions like BIDV are actively seizing and auctioning assets, including real estate and vehicles, to recover bad debts.

The stock market has faced headwinds, with the VN-Index recording its third consecutive weekly decline. High margin debt levels combined with declining liquidity and rising interest rates have raised concerns about potential call margin waves. Additionally, brokerage firms are bracing for lower Q3 profits due to reduced trading volumes compared to the high levels seen in 2025.

On a more positive note, several companies are scheduled to pay cash dividends in mid-October, with rates reaching up to 15% for certain hydropower and manufacturing firms.