Outstanding corporate bonds have totaled VND1.4-1.5 million billion, with the demand for capital mobilization via this channel still growing.
As many as VND266 trillion worth of corporate bonds will reach maturity in 2022, accounting for 19 percent of total bonds in circulation.
At the end of 2021, outstanding Government bonds and corporate bonds comprised 71.3% and 28.7% of the local bond market, respectively.
According to the Vietnam Bond Market Association, in the first two months of the year, the total corporate bond value issued to the public rose by 31 percent.
Realty bonds often catch special attention in the primary market thanks to attractive interest rates, even though warnings are often issued about their risks.
Credit institutions with a bad debt ratio of more than 3 per cent are forbidden to buy corporate bonds, according to the latest announcement from the SBV.
After continuously issuing warnings about investment in corporate bonds, the Ministry of Finance has decided to take strong action against companies issuing "problematic" bonds to prevent risky behavior to the market.
The fledgling property-backed bond market is tempting investors for its inviting high yields but experts still warn investors of potential risks of the products.
Corporate bonds issued by real estate firms account for a high proportion of securities that mature in three years. Experts warn of high risks if the real estate market cannot recover by that time.
The movement of issuing corporate bonds has cooled down, but the large number of bonds that have been issued with no collateral, or untrustworthy collateral, is viewed as a ‘bubble’ that may burst at any time.