#4 Highlights from the “Vietnam Credit Spotlight 2025” Conference – Corporate Bond Market: Sustainable Breakthrough or Emerging Risks?

At the "Vietnam Credit Spotlight 2025" conference, organized by FiinRatings and S&P Global Ratings, speakers provided in-depth insights into Vietnam’s corporate bond market, asserting that it is experiencing a strong recovery and is projected to achieve double-digit growth in 2025.

At the "Vietnam Credit Spotlight 2025" conference, organized by FiinRatings and S&P Global Ratings, speakers provided in-depth insights into Vietnam’s corporate bond market, asserting that it is experiencing a strong recovery and is projected to achieve double-digit growth in 2025.  

According to Nguyen Quang Thuan, Chairman and CEO of FiinRatings, "The total capital demand for investment in the 2026-2030 period is substantial, reaching to approximately 160 billion USD. Meaning, around 33 billion USD needs to be mobilized every year to ensure the economic growth targets. This will lay the groundwork for the development of the capital market, including corporate bonds.” 

However, the current structure of fundraising through corporate bonds for non-financial enterprises is still limited, accounting for only about 33% of the total market issuance value, approximately USD 6 billion. Meanwhile, equity capital fundraising through the stock market is also on a very limited scale, at just over USD 3 billion. The slow opening of the corporate bond market, especially public offerings, will continue to burden bank credit. This could pose potential risks to system safety, particularly as capital buffers at commercial banks in Vietnam remain low, with an average capital adequacy ratio of 12.4% by the end of 2024, which is relatively low compared to regional markets and the high credit growth demand of 16% for 2025 as currently targeted. 

Therefore, alongside the capital-opening solutions being implemented, along with policy changes and legal adjustments, we expect improvements in corporate bonds from non-bank financial institutions - such as finance companies, as well as from major sectors like residential real estate, energy, and infrastructure starting from the second half of 2025. 

We also believe that commercial banks will continue to promote the issuance of Tier 1 and Tier 2 capital, with bond issuance remaining active, especially as interest rates stay low. This will support robust credit growth while improving financial safety indicators, such as the capital adequacy ratio, and reducing the risk of mismatch between short-term funding and medium to long-term lending needs. 

Another notable trend is the improvements to market transparency due to new regulations. “The amendment of Decree 155 tightens issuance conditions, enhances transparency requirements, and mandates credit ratings in certain cases. This is a positive signal for improving information transparency and helps restore investor confidence and stimulate market growth," noted Mr. Thuân. It is forecasted that from the second half of 2025, publicly offered bonds will increase sharply, particularly from public companies with high transparency standards and substantial capital needs. 

Opportunities and Challenges in Vietnam’s Corporate Bond Market 

From the perspective of Mr. Le Hong Khang, Analytical Director at FiinRatings, one of the most pressing issues for Vietnamese businesses is their imbalanced capital structure. "Currently, many companies heavily rely on short-term debt to finance their investment and business operations, limiting their ability to formulate long-term strategies. All the while corporate bonds – a crucial source of medium- and long-term financing – still face several barriers to expand." 

One significant limitation of the market is the lack of diversity among investors. "Currently, Vietnamese corporate bonds primarily rely on commercial banks, while lacking participation from pension funds, insurance companies, and mutual funds - key investor groups in developed markets," Mr. Khang analysed. This situation arises from the absence of clear investment incentives and restrictive regulations on allowing investment funds to allocate capital into corporate bonds based on risk assessments. 

Moreover, the lack of specialized investment support tools is a major barrier. "Currently, bond valuation tools, yield curves, and credit ratings have not been fully developed, leaving the market with insufficient transparency regarding risk, which limits the access of major investors," Mr. Khang emphasized. This creates a vicious cycle where companies struggle to raise capital due to a lack of investors, while investors lack the tools to assess and manage risk. 

Overall, for the corporate bond market to truly play its role as an effective capital mobilization channel for the economy, Vietnam needs to continue pushing reforms, expand the investor base, and enhance the quality of market tools. "These changes will not only improve market liquidity and transparency but also play a crucial role in building a robust system, supporting the long-term economic growth goal," concludes Mr. Khang. 

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The "Vietnam Credit Spotlight 2025" Recap Series summarizes key insights from the conference, offering in-depth perspectives on economic outlook, credit ratings, banking systems, corporate performance, and capital markets. This series serves as a valuable resource for businesses and investors looking to shape their strategies in the evolving economic landscape.  

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About FiinRatings 
FiinRatings, a member of FiinGroup and technical partner of S&P Global Ratings, is a licensed credit rating agency under Vietnam’s Ministry of Finance. Our services include credit ratings, green bond verification, and independent evaluations (Second Party Opinion - SPO), catering to issuers, lenders, and investors across diverse sectors in Vietnam. 

FiinRatings’ SPO services provide independent evaluations of financial instruments, policy frameworks, or transactions aligned with principles set by global institutions like the International Capital Market Association (ICMA) and the Climate Bonds Initiative (CBI). Notably, FiinRatings is the first approved verifier for CBI Climate Bond Standards in Vietnam. 

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