3Q2026 Vietnam Corporate Bond Bulletin
October 21, 2026
Corporate Bond Market Q3 2026: Issuance Growth Moderates as Funding Costs Remain Elevated
- Vietnam’s corporate bond market lost momentum in Q3 2026, with issuance volume declining to VND 179.4 trillion across 153 transactions, down 26% from the previous quarter. Despite the sequential slowdown, issuance remained 7.8% higher than a year earlier, bringing total issuance in the first nine months of 2026 to VND 464.1 trillion, up 6.7% year-on-year. Net market expansion remained modest, with outstanding corporate bonds increasing by only 7.1% from year-end 2025 to approximately VND 1.54 quadrillion. Compared with GDP growth of 9.0% and credit growth of 11.59% over the same period, the corporate bond market continued to underperform broader financing growth, reflecting the impact of elevated funding costs and a more stringent regulatory environment.
- The public issuance segment remained a notable exception to the broader market slowdown. Public offerings reached a record VND 31.6 trillion through 16 transactions during the quarter, increasing 55% year-on-year. Commercial banks continued to dominate this segment, while participation from non-bank issuers gradually expanded, supporting the market’s transition toward a more transparent and diversified funding structure.
- Sector trends diverged during the quarter. Real estate bond issuance corrected sharply following the exceptionally strong issuance volume recorded in Q2, declining 55% quarter-on-quarter, largely due to lower issuance by major developers. Nevertheless, issuance activity within the sector remained significantly above last year’s level, increasing 27% year-on-year in Q3 and 121% year-on-year during the first nine months of 2026, underlining the sector’s substantial funding requirements. Meanwhile, bank bond issuance reached VND 120 trillion, up 11.8% year-on-year, although cumulative issuance remained below the previous year’s level. Changes to the Loan-to-Deposit Ratio (LDR) framework under Circular 50 have reduced incentives for commercial banks to issue bonds, contributing to the market’s slower growth.
- Funding costs continued to rise across all issuer groups. Average bank bond coupon rates increased to 8.85%, exceeding the average level observed during the 2022 tightening cycle, while a number of transactions were priced above 10%. Coupon rates for real estate and other corporate issuers also increased materially, reaching approximately 12.5%-13.0%, reflecting persistent pressure from the higher interest rate environment.
- Looking ahead, refinancing pressure is expected to intensify. Corporate bond maturities are estimated at approximately VND 93 trillion in Q4 2026, the highest quarterly maturity volume of the year, with nearly half attributable to real estate issuers. S&I Ratings estimates that total bond maturities could increase to approximately VND 276 trillion in 2027, representing a 22% increase from 2026 and creating substantial refinancing needs across the market.
- Despite near-term challenges, S&I Ratings believes the medium-term outlook for Vietnam’s corporate bond market remains constructive. Strong demand for long-term capital from infrastructure, energy, industrial, and real estate projects, together with rising refinancing requirements, will continue to support market development. However, elevated interest rates are likely to remain a key constraint through at least the first half of 2027, keeping borrowing costs high and weighing on issuance activity.
- At the same time, the Government’s efforts to re-enter international capital markets and pursue an Investment Grade sovereign rating, alongside international fundraising initiatives by institutions such as SHB and Vietcombank, highlight an increasing focus on funding diversification and broader access to global investors. These developments should contribute positively to the long-term evolution and resilience of Vietnam’s capital markets.
Download the full report
Contact us
Our advisor will contact you as soon as possible
By subscribing you agree to with our Privacy Policy.
Explore more about our solutions
About RatingsRelated Post
Corporate Bond Market Q2 2026 Overview: Property Sector Drives Market Growth Vietnam’s corporate bond market recorded a notable rebound in Q2 2026, with 160 successful issuances raising a total of VND 233.5 trillion (Figure 1). Activity improved significantly from the seasonally weaker first quarter. However, on a year-on-year basis, the number of issuances declined
Q3/2025 Corporate Bond Market: Record Early Buybacks Amid Cooling Issuance Corporate bond issuance in Q3/2025 totaled VND 156.1 trillion across 154 domestic deals and one international issuance by VPBank (USD 300 million), down 33% from Q2 but flat year-on-year. Activity cooled after a strong Q2 driven by major banks raising capital. Private placements still dominated
1Q2025 Overview: Positive signals from public bond issuance channel According to S&I Ratings estimates, 1Q2025 saw 13 bond issuance rounds totaling VND 25.1 trillion. This includes 11 rounds of public issuance (VND 23.1 trillion) and 2 rounds of private issuance (VND 2 trillion). The bond issuance value increased by 4.7% compared to the same period
Join our newsletter
Subscribe for the latest updates and news.
