Corporate Bonds Rebound, Redemption Pressure Mounts

According to data from the Vietnam Bond Market Association (VBMA), the value of corporate bond issuances in July 2025 alone reached VND 20,134 billion. For the first seven months of the year, the total issuance value reached nearly VND 287,000 billion, a 57% increase compared to the same period in 2024 (VND 183,000 billion). Banks continued to dominate, accounting for approximately 75% of total issuances, mainly through private placements to supplement operating capital and meet liquidity requirements.

Notably, the early redemption of bonds also witnessed a significant jump. In June 2025, the redemption value surged to over VND 62,900 billion, the highest ever, and a 190% increase compared to the previous month. The total redemption value for the first six months of the year reached approximately VND 123,300 billion, a 31% increase compared to the same period last year. While this reflects the enterprises’ willingness to reduce debt, it also indicates the looming maturity pressures, forcing many issuers to proactively manage their obligations.

According to FiinGroup statistics, from July to the end of 2025, the total value of maturing bonds will reach VND 118,000 billion. Notably, the real estate sector accounts for 52.2%, equivalent to VND 65,300 billion. This sector, which has already faced challenges in raising new capital, now faces even more pressure in arranging funds to repay debts on time.

August 2025 is considered a “peak” period for bond maturities, with a total maturity value of approximately VND 17,500 billion, nearly four times the average monthly maturity value in the first seven months. Additionally, non-bank enterprises will also have to pay approximately VND 6,600 billion in interest during this month, of which the real estate sector accounts for 63%, equivalent to VND 4,200 billion.

Some enterprises with large bond maturities in the coming period include Quang Thuan Investment Joint Stock Company (VND 6,000 billion), Trung Nam Land (VND 2,500 billion), and Setra (VND 2,000 billion). The ability to manage cash flow and secure alternative financing will be crucial to the financial safety of these enterprises.

Commenting on the situation, Assoc. Prof. Dr. Nguyen Van Hieu, Head of the Public Finance Department, University of Economics, Vietnam National University, Hanoi, stated: “Although the market is showing strong recovery in terms of issuance volume and redemption activities, this recovery relies heavily on banks. Risks will increase if enterprises, especially in the real estate sector, fail to arrange funds to repay debts on time. Regulatory authorities need to closely monitor the situation and provide mid-term liquidity support to healthy enterprises.”

As of the end of June 2025, the total scale of the corporate bond market reached approximately VND 1,350,000 billion. Privately placed bonds accounted for nearly VND 1,200,000 billion (88.6%), a 4.3% increase compared to the previous month. In contrast, the value of publicly offered bonds decreased slightly due to early redemptions, typically for bonds issued by a bank in mid-2023.

From the beginning of the year until now, issuers have paid approximately VND 91,400 billion in principal and interest on bonds, equivalent to 32% of the total payment obligations for the year. However, the remaining amount until the end of the year is still large, amounting to approximately VND 201,200 billion. Notably, August alone accounts for VND 48,100 billion, a peak in the context of a challenging credit market and still-constrained capital flows.

The corporate bond market in the first half of 2025 showed positive signs of recovery, evident in the growth of issuances and redemption activities. However, the real challenge lies ahead, with increasing maturity pressures, especially from the real estate sector. Without comprehensive solutions and appropriate policy support, the risk of “capital entrapment” will continue to weigh on the market in the last months of the year.