Vietnam’s corporate bond market faces stagnation

Vietnam’s corporate bond market is expected to remain sluggish through the first quarter of 2024, marked by a lack of new issuances and a focus on bond repurchases. This trend is attributed to tighter conditions for issuing and trading, with Decree 65/2022/NĐ-CP reintroduced, imposing stricter regulations. Retail investors, previously key market drivers, now face heightened entry barriers, reducing their market participation significantly. The Vietnam Bond Market Association notes a heavy burden of maturing bonds, particularly in real estate and banking sectors. Experts suggest a recovery in the bond market by year-end, driven by adapting businesses and increased capital needs. Proposals to extend regulatory easing and calls for a separate trading channel for institutional investors highlight efforts to balance market stability and growth.