Vietnamese banks' bond issuance sees three-fold rise in first 5 months

Vietnamese banks have significantly increased their bond issuance in 2025, with a reported total issuance of VND81 trillion ($3.1 billion) in the first five months of the year.

The figure marks a staggering 3.3-fold increase compared to the same period last year, reflecting a robust demand for financing in the banking sector.

According to the Vietnam Bond Market Association (VBMA), May alone witnessed 42 bond issuances, totalling approximately VND46.77 trillion ($1.8 billion). This represents an increase of 2.8 times over the same period last year, when bond issuances amounted to just VND16.7 trillion.

Cumulatively, the total value of corporate bond issuances in the first five months of the year reached VND120.68 trillion ($4.63 billion), with public offerings accounting for VND27.9 trillion and private placements making up the remaining VND92.78 trillion ($3.56 billion).

During this period, bank bonds constituted 67.1% of the total issuances, overshadowing the real estate sector, which accounted for only 20.8%. The real estate sector has seen a decline, issuing only VND25.1 trillion ($960 million) in bonds, primarily from Vingroup, which is down by 13.6% year-on-year.

Despite the overall drop in new bond issuances from real estate companies, many have been actively repurchasing bonds ahead of maturity.

Since the beginning of the year, the total value of early bond repurchases has reached VND55.2 trillion ($2.12 billion), marking a 10.6% increase compared to 2024. The real estate sector leads this trend, accounting for approximately 50.7% of the total repurchased value.

A total of VND151.87 trillion ($5.83 billion) in bonds is set to mature by the end of 2025, with 53.8% of this amount belonging to the real estate sector.

The Government is currently working on a draft amendment to the Enterprise Law, which includes new conditions for issuing private bonds that aim to limit the debt-to-equity ratio to no more than five times the issuer's equity.

This proposed regulation seeks to ensure that companies maintain financial stability while also facilitating funding for growth and restructuring efforts.

The Ministry of Finance believes that these measures will not adversely impact capital raising efforts, as companies can still raise capital through equity markets or bank loans.