Transactions on Vietnam private placement corporate bond market reach $242 mln in one month

Vietnam's private placement corporate bond market reported total trading volume of 23,328,110 bonds over one month from its July 19 debut, equivalent to nearly VND5.77 trillion ($242 million).

On average, trading volume reached 1 million bonds per session, while trading value reached VND250.6 billion ($10.52 million).

Of the total in the one-month period, Vietcombank bonds had the highest trading value at VND3.41 trillion ($143 million), followed by BIDV bonds with VND1.83 trillion ($76.9 million). Domestic investors accounted for 100% of transactions on the market.

At the time of opening, the market had 19 private placement corporate bond codes registered for trading, and since then the HNX has put into trading an additional 12 codes.

The 31 bond codes on the HNX trading system belong to BIDV bank, Vietcombank, VinFast Trading And Production Limited Liability Company, Transport and Industry Development Investment JSC, and Phan Vu Invesment Corporation. Of which, Vietcombank had the largest registered trading volume of VND7,240 billion ($304 million) with 15 bond codes.

The trading member system currently has eight member securities companies. Fifteen member securities companies and one commercial bank are completing applications to join the market.

A month since the private placement corporate bond market opened on July 19, 2023, trading has gradually improved in the direction of increased transparency and risks limited for investors.

This has promoted liquidity in the market, while at the same time, the primary market will have information and reference conditions for better development, helping issuers to raise capital through the market.

According to statistics from the corporate bond information site, in June 2023, there were 16 issuances of private placement corporate bonds with a value of VND7.63 trillion ($320 million), 32 issuances worth VND28.75 trillion ($1.2 billion) in July, and 18 issuances worth VND29.84 trillion ($1.25 billion) in August.

According to the provisions of Clause 3, Article 3 of Decree 65/2022/ND-CP, after the trading system comes into operation, all private placement corporate bonds must be put into trading on the system within three months of registeration. This is expected to contribute to healthy distribution of corporate bonds and limit violations.