BondXpress 2024 Review and 2025 Outlook: Anticipating Breakthroughs from Non-Bank Bonds Driven by New Policies

The corporate bond (C-bond) market in 2024 saw improvements in both issuance value and volume, primarily driven by credit institutions. The year also witnessed notable developments, reflecting the gradual enhancement of product quality. Furthermore, new regulations for both private placements and public offerings are expected to improve credit quality and foster investor confidence in the market. 

The corporate bond (C-bond) market in 2024 saw improvements in both issuance value and volume, primarily driven by credit institutions. The year also witnessed notable developments, reflecting the gradual enhancement of product quality. Furthermore, new regulations for both private placements and public offerings are expected to improve credit quality and foster investor confidence in the market. 

Below are key highlights from the BondXpress 2024 Review and 2025 Outlook report by FiinRatings: 

• Low domestic interest rates in 2024 supported market activity: The stable interest rates pushed demand for corporate bonds with higher coupon rates, combined with improved transparency and the adoption of credit ratings also attracting significant investor interest. 

• Credit growth reached the 15% annual target in 2024, mainly concentrated among large corporates. Meanwhile, credit for small and medium-sized enterprises (SMEs) and individuals grew more slowly. This, however, supported the C-bond market as banks acted both as major issuers and investors, including real estate bonds. 

• The market recorded improvements in issuance value and volume. In 2024, the market recorded 461 trillion VND in new corporate bond issuances (92% via private placements), a 33% increase compared to the previous year, across 473 issuances (as of January 13, 2025). 

• Credit institutions dominated the market, accounting for 69% of the total issuance value in 2024. Meanwhile, the real estate sector showed only a modest recovery, with the issuance value increasing by 5.5%. 

• The cumulative C-bond problematic rate rose at a slower pace, reaching 19.7% at the end of 2024. This reflects improved repayment capacity among issuers. FiinRatings estimates that approximately 214 trillion VND in privately placed bond principal will mature in 2025, with the real estate sector facing significant maturities in Q3 and Q4. 

• The market noted some non-financial enterprises issuing long-term bonds, which were credit-rated and payment-guaranteed by reputable international organizations. These positive trends are expected to contribute to the sustainable development of the market in the coming years. 

• The revised Securities Law 2024 for private placements and the Draft Amendment of Decree 155/2020 (currently under consultation) for public offerings are expected to enhance market transparency and credit quality, alleviating investor concerns. However, tighter restrictions for public offerings (e.g., liability-to-equity ratio capped at 4:1) could disqualify many companies in highly leveraged sectors such as real estate, construction, and services, potentially affecting market supply. 

For the full BondXpress 2024 Review and 2025 Outlook report by FiinRatings, please refer to THIS LINK   

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About FiinRatings   

FiinRatings, a member of FiinGroup and a technical cooperation partner of S&P Global Ratings, is a licensed credit rating agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, credit institutions, and investors in the Vietnamese credit market. FiinRatings is also the first authorized green bond verifier in Vietnam, adhering to the international green bond standards of the Climate Bonds Initiative... For more information, please visit https://fiinratings.vn/     

FiinGroup is Vietnam's leading provider of financial data analytics platforms, business information services, and industry research. FiinGroup provides services to domestic and foreign investors in the capital market and businesses to support their business development in Vietnam. For more information, please visit https://www.fiingroup.vn 

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