Vietnam corporate bond issuance slumps 85% in March 2024, real estate

Vietnam’s corporate bond market shrank sharply, with issuance down 85.5% year‑on‑year to just VND 3.75 trillion in the first 25 days of March 2024, intensifying cash‑flow pressure on real‑estate developers that must refinance over VND 130 trillion of bonds due this year【1】.

Issuance collapse and looming maturities

The Hanoi Stock Exchange data show only two firms—Vietnam An and Hai Đăng—successfully issued bonds in March 2024, totaling VND 3.75 trn, a stark contrast to the VND 10.7 trn issued in the same period a year earlier【1】. Analysts estimate that total corporate bond maturities in 2024 will exceed VND 300 trillion, with real‑estate issuers alone responsible for more than VND 130 trillion【1】. This mismatch between dwindling fresh supply and massive refinancing needs creates a “cash‑flow crunch” for property developers.

Liquidity strain and funding alternatives

Despite the issuance squeeze, banks have continued to extend credit to the sector. VIS Ratings’ Dương Đức Hiếu notes that bank lending to real‑estate rose while overall credit fell, and many developers have turned to equity raises to shore up balance sheets【1】. However, the high‑interest environment—average new‑issue rates remain elevated—means that refinancing via bonds will likely stay costly until the second half of 2024, when market sentiment and regulatory tweaks (e.g., full implementation of Decree 65/2022) could revive issuance【1】.

Policy backdrop and market outlook

The State Bank of Vietnam (NHNN) has kept headline policy rates low, but “agreement” rates on deposits have risen again in May 2026, reflecting broader liquidity pressures【2】. This environment, combined with a LDR of 112%—where banks’ loan portfolios exceed deposits—exacerbates funding gaps for long‑term projects like real‑estate development【2】. Experts warn that unless credit conditions ease or bond‑market reforms expand institutional participation, the sector may face heightened default risk.

What to watch

• VND 130 trn real‑estate bond maturities: monitor refinancing activity and any large‑scale buy‑backs announced in Q3 2024.
• Decree 65/2022 implementation: watch for regulatory updates that could broaden eligible investors and revive bond issuance.
• Bank LDR trends: a sustained LDR above 110% could signal further tightening of loan supply to developers.

The stark drop in new bond issuance underscores a liquidity bottleneck for Vietnam’s property sector, raising questions about whether bank credit and equity markets can bridge the financing gap before massive maturities force defaults.