Public bond offerings expected to increase sharply in the second half of 2025

The return of real estate businesses with solid financial foundations and the restart of Power Plan VIII will promote capital mobilization channels through bonds next year, especially public issuance in the second half of the year.

The return of real estate businesses with solid financial foundations and the restart of Power Plan VIII will promote capital mobilization channels through bonds next year, especially public issuance in the second half of the year.

New momentum from real estate, energy, infrastructure groups

Assessing the prospects of Vietnam's corporate bond market in 2025, Mr. Nguyen Quang Thuan, General Director of FiinRatings, forecasts that the market size will reach double-digit growth in 2025. The high growth momentum in 2025 will not only come from banks and non-bank financial institutions such as finance companies but also from large corporate sectors such as residential real estate, energy and infrastructure with the policy and legal measures and actual capital needs that we observe today.

Previously, in 2024, the corporate bond market also recorded a strong recovery with the total value of new issuance reaching about VND 444 trillion, up 27% over the same period last year.

“Banks have a need to issue Tier 2 bonds in the context of interest rates remaining at relatively low levels, to support strong credit growth as well as improve financial safety indicators such as capital adequacy ratio and limit the use of short-term capital for medium and long-term loans. We also forecast the strong return of real estate enterprises with solid financial foundations and the restart of the Power Plan VIII will promote corporate bond issuance activities next year,” said Mr. Thuan.

Mr. Nguyen Quang Thuan, General Director of FiinRatings

Sharing at the workshop "Vietnam Credit Focus 2025: Growth, Credit and Capital Market in the New Era", Mr. Thuan said that market transparency is being improved thanks to new regulations, not only for privately issued bonds but also for bonds offered to the public with the amendment of Decree 155 being applied and soon coming into effect. In particular, issuance conditions are adjusted more strictly, requiring information transparency and mandatory application of credit ratings in certain cases.

Regarding the public offering of bonds, Mr. Thuan said that this market is expected to increase strongly from the second half of 2025. Especially from public companies that already have higher transparency and large capital needs, with expectations for the birth of the revised Decree 155 while the standards for issuing individual bonds have also been more standardized with new regulations of the revised Securities Law that will soon come into effect.

Simplified approval processes, standardized issuance criteria, and the requirement to apply credit ratings with collateral or guarantees are important factors in restoring investor confidence in this investment product.

Developing the corporate bond market to ensure medium and long-term capital supply

From the issuer’s perspective, the current debt structure still relies heavily on short-term debt to finance investment and business operations. The need to move towards a more balanced capital structure is emphasized by Mr. Le Hong Khang - Director of Analysis, FiinRatings. According to the expert from FiinRatings, the current debt structure reduces the flexibility of businesses in long-term strategic planning.

According to Mr. Le Hong Khang, in order for the corporate bond market to truly play its role as an effective capital mobilization channel, Vietnam needs to promote reforms, expand the investor base and improve the quality of tools to support market development.

Currently, the Vietnamese corporate bond market still depends heavily on commercial banks, while lacking the participation of institutional investors such as pension funds, insurance companies and mutual funds – groups of investors that play an important role in developed markets. This is mainly due to the lack of investment incentives, such as policies and mechanisms that allow pension funds and insurance funds to allocate capital based on risk assessment. Currently, these institutional investors mainly focus on government bonds and bank deposits, causing the corporate bond market to lack depth and diversification.

At the same time, bond pricing tools, yield curves and credit ratings are still not fully developed, hindering investment efficiency and limiting participation opportunities for large-scale institutional investors.

Although the government is implementing reforms to improve the legal infrastructure for financial and capital markets, it is still necessary to accelerate reforms to expand the scale of the corporate bond market and increase access to institutional investors, thereby developing the corporate bond market to ensure medium- and long-term capital supply for the economy. This is especially important when the economy is gradually shifting to high-tech and sustainable development industries that require large investment capital in the coming time.

Source: https://baodautu.vn/trai-phieu-chao-ban-ra-cong-chung-du-bao-tang-manh-nua-cuoi-nam-2025-d249776.html