
April 2025 Bond Spotlight: Balancing Against Interest Rate Pressure and Corporate Challenges from Tariff Threats

The corporate bond market in April witnessed a notable recovery of non-bank issuers after a prolonged period of absence, with total issuance reaching VND 13.2 trillion—driven primarily by enterprises in the Real Estate and Commercial Services sectors.
The corporate bond market in April witnessed a notable return of non-bank issuers after many months of absence, with total issuance reaching VND 13.2 trillion—driven primarily by enterprises in the Real Estate and Commercial Services sectors.
FiinRatings’ latest Bond Spotlight Report provides a comprehensive market update along with key highlights from the month, including:
Key Macroeconomic Impact Factors:
- New tariff measures from the Trump administration are expected to put pressure on several key export sectors of Vietnam. However, the direct impact of the tariff situation on the corporate bond market is low because corporate bond issuers are primarily in domestically-focused sectors such as banking, securities, and real estate – which currently account for. about 77.2% of the total outstanding corporate bonds.
- On the other hand, significant changes in the global business environment and financial markets due to tariff impacts may continue to affect Vietnamese companies' international capital raising activities. This includes offshore capital mobilization by commercial banks and leading corporations, potentially impacting the credit quality of Vietnamese enterprises, particularly as many major companies are planning to raise strategic equity capital, international bonds, v.v.
- Despite unpredictable challenges, Vietnam still maintains a certain attractiveness to FDI flows, with registered investment in the first 4 months of 2025 showing impressive growth compared to the same period last year. Specifically, registered FDI increased by 39.9% and implemented FDI increased by 7.3% year-over-year.
- The USD/VND exchange rate has increased and has not shown signs of cooling down since the end of March 2025, as Vietnam is under pressure from US trade policies and the demand for USD remains high. However, the State Bank of Vietnam (SBV) is still focused on injecting and withdrawing money instead of activating the bill channel to regulate liquidity.
- Deposit and lending interest rates at banks are being actively and flexibly adjusted downward or maintained at low levels to stimulate domestic credit growth as directed by the SBV.
Primary and Secondary Market Activities:
- In April, the primary market recorded total issuance value of 35.2 trillion VND, increasing by more than 1.06 times compared to the previous month and up 80% year-over-year. Some sectors like Real Estate and Commercial Services have shown recovery in issuance activities, however, issuances remain concentrated among a few enterprises.
- The buyback motivation in April came primarily from credit institutions, along with companies from other sectors participating to settle previously delayed/restructured bonds. April recorded an additional 2.42 trillion VND in problematic corporate bonds, decreasing 63.0% compared to the previous month.
- Liquidity in the secondary market decreased by nearly 13% compared to the previous month, but trading values remained higher than the average for the first 4 months of the year, concentrated in real estate and banking bonds. Banks led with a trading value of 43 trillion VND (-42%, representing 41% of total) and Real Estate reached 38.6 trillion VND (+26%, representing 37%)
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