Chủ đề: corporate bond

According to the Vietnam Association of Realtors (VARs), in the long run, corporate bonds will remain an effective capital mobilization channel. Compared to other countries in the region, the size of Vietnam’s corporate bond market is still quite modest. It is therefore necessary to adopt synchronous and effective solutions for the market’s healthy development.

The Ministry of Finance (MoF) plans to speed up the establishment of a secondary market for individual corporate bonds and supplement regulations on credit ratings, to prevent overheating and risks in the corporate bond market.

With low interest rates on corporate bonds, banks have taken advantage of restructuring old debts and issuing new bonds as well as increasing bond purchases ahead of time to meet the State Bank of Vietnam (SBV)’s capital ratio regulations.

The value of corporate bond issuances by consumer goods enterprises in October stood at VND7.284 trillion ($320.48 million), accounting for 21 per cent of the total value and putting it in second place, surpassing the banking group but behind the real estate group.

Forty-two corporate bond issuances were conducted in September, mobilizing VND29.734 trillion ($1.3 billion). The real estate group attracted VND8.394 trillion ($369.56 million) in private placements with high interest rates. Experts, however, have warned that this may be the beginning of a “Vietnamese Evergrande”.