VIS Rating's latest report shows that the volume of new bond issuance in the first quarter of 2025 reached VND25,000 billion, down 12% over the same period last year.
Over the past five years, the first quarter has typically accounted for only about 10% of total annual issuance, reflecting the seasonal impact of the corporate bond market.
The difference in corporate bond issuance in the first quarter of 2025 is that the value of new issuance is the lowest in the past 5 years, mainly due to the lack of individual issuance activities. Specifically, in the quarter, only 2 issuances were announced with a value of 2,000 billion VND.
On the contrary, the issuance of corporate bonds to the public in the first quarter reached VND23,130 billion, an increase of 68% over the same period, the highest in the past 5 years, thanks to the contribution of banks and securities companies.
According to the Vietnam Bond Market Association, from the beginning of the year to March 28, issuing enterprises bought back VND21,979 billion of bonds before maturity, down 1.5% compared to 2024. Real estate is the leading industry group, accounting for about 52.6% of the total value of early buybacks (equivalent to about VND11,563 billion).
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| Current status of late payment of principal and interest on corporate bonds. |
In the first quarter of 2025, there were 3 new late interest payment periods from 3 issuers that recorded late payments for the first time. The late payment bonds from Long Thanh Cement Company and R&H Group reflect the difficult financial situation when both companies continuously reported losses in the period of 2022-2023 due to challenges in their core business areas, namely cement and resort real estate.
The remaining deferred bond, issued by Tracodi Construction Company, is among five bonds suspended from trading related to the BCG ecosystem.
By the end of the first quarter of 2025, the total outstanding corporate bonds on the market was VND 1,262 trillion, up 4.9% over the same period. Banks accounted for 41.7% and residential real estate accounted for 30.3% of the total value of outstanding bonds.
The total market delinquency rate remained stable at 14.6% at the end of March 2025 due to no major fluctuations.
Seven out of 22 bonds maturing in April 2025 are assessed to have weak credit profiles, of which three bonds have delayed interest payments.
In the first quarter of 2025, 17 issuers paid part/or all of the overdue principal balance of VND 8,081 billion (up 83% over the same period).
The units with the largest payment value include No Va Real Estate Investment Group Company, Ninh Thuan Energy Industry Joint Stock Company and Saigon Glory.
The rate of recovery of overdue principal debt increased by 2.7% from the end of 2024 to 28.2% by the end of the first quarter of 2025.
Source: https://baodautu.vn/phat-hanh-trai-phieu-quy-i2025-thap-nhat-5-nam-rieng-phat-hanh-ra-cong-chung-tang-toi-68-d262521.html
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