Market Commentaries #4: A Study on Corporate Bonds Default in Vietnam

We pleased to give commentaries about the corporate bond default in Vietnam based on our study about this matter. We wish to bring most up-to-date analysis and data-driven commentaries about the scale the issue and possible spillovers to the capital market and the banking sector in particular.

 

We are pleased to give commentaries about the corporate bond default in Vietnam based on our study about this matter. We wish to bring the most up-to-date analysis and data-driven commentaries about the scale of the issue and possible spillovers to the capital market and the banking sector in particular. Below are key highlights:

• As of 17 March 2023, 69 issuers who have at least one outstanding bond were unable to meet debt obligations at the due date with a total default value of VND 94.43 trillion, representing 8.15% of total non-bank bond outstanding value in the market.
• There are 43 issuers are issuers in the real estate sector with the total value of defaulted corporate bonds at VND 78.9 trillion, accounting for 83.6% of the total default value. Default ratio for real estate bonds only is 20.17%.
• These problematic issuers on the default list currently have total debts of VND 233.7 trillion as of 31 December 2022, in which their total bond outstanding value is at VND 169.7 trillion. The remaining VND 64 trillion is in the form of bank loans and other debts.

You can download the commentary for more detailed information HERE.

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