Industrial real estate market loses momentum.
The total value of bond issuances by non-financial enterprises in 2024 reached approximately VND 150 trillion, an increase of 8.4% compared to the same period last year. Nearly half of this amount was for debt restructuring purposes – according to the latest report from Vietnam Investment Credit Rating Joint Stock Company (VIS Rating).
According to VIS Rating, the residential real estate sector – including the resort segment – is showing positive prospects thanks to increasing housing demand and improvements in legal procedures. Developers are expected to accelerate project implementation in 2025 and seek funding from the bond market. In particular, continued favorable access to bank credit will support the recovery of this sector.
In contrast, the industrial real estate sector may face more challenges. Risks related to new US tax policies are slowing down foreign investment and project expansion in this sector. In the first four months of 2025, newly registered FDI capital decreased by 24% year-on-year – leading to a cautious sentiment among industrial park developers.
Despite support from the State Bank of Vietnam's policy of reducing credit risk coefficients and a 34% increase in bank loans for 30 listed companies in 2024, the amount of bonds issued by the industrial real estate sector decreased by 18%. VIS Rating predicts that fundraising through bonds in this group will continue to be limited in 2025.
Electric and automobile sales accelerate thanks to supportive policies.
The automotive and electrical sectors have emerged as two new bright spots in the corporate bond market. For the automotive sector, the policy of eliminating import taxes on automotive components from February 2025 is expected to encourage businesses to expand domestic production. Companies like VinFast and Tasco are expected to actively raise capital through bonds to fund factory and supply chain expansion. It is projected that the value of automotive bond issuances in 2025 will maintain high growth, equivalent to the 33% increase of the previous year.
For the electricity sector, especially renewable energy, the issuance momentum could accelerate towards the end of 2025. Recent positive developments in negotiations on pricing mechanisms for transitional renewable energy projects have contributed to improved financial viability, creating a basis for businesses to confidently raise capital for investment expansion.
According to VIS Rating, the total value of non-financial corporate bonds maturing in 2025 will reach VND 151 trillion, a 9% increase compared to 2024. However, the risk of debt restructuring is assessed as "remaining under control," thanks to improved market liquidity and the proactive early repurchase of bonds by businesses.
In the first four months of 2025, bond repurchase and early repayment activities increased by 97% compared to the same period last year. Notably, 73% of the value of newly issued bonds (equivalent to VND 13,200 billion) was used for debt restructuring purposes. Of the bonds maturing in 2025, approximately 60% are in the residential real estate sector – a sector with favorable prospects for accessing capital and reaching extension agreements with bondholders.
However, in the electricity sector, approximately 30% of the 4.1 trillion VND in maturing bonds are renewable energy projects in transition – which are still experiencing delays in principal and interest payments. VIS Rating expects that once these projects finalize electricity pricing agreements and officially begin commercial operation, cash flow will improve, helping to secure debt obligations.
In terms of market overview, VIS Rating forecasts that the growth rate of non-financial corporate bond issuance in 2025 will be equivalent to the 13% achieved in 2024. Residential real estate, automotive, and power sectors will continue to play a leading role in driving the market, while higher-risk sectors such as industrial real estate will need more time to recover.
Source: https://doanhnghiepvn.vn/kinh-te/phat-hanh-trai-phieu-doanh-nghiep-2025-bat-dong-san-cong-nghiep-hut-hoi/20250514093226866
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