Economists believe the most important action that needs to be done to protect the bond market is retaining investors’ confidence. Two special solutions have been proposed.

Over 80% of real estate bonds have been issued by unlisted firms that are financially weak and have low transparency, said the credit rating agency FiinRatings.

Analysts say bank shares will face difficulties in the first half of the year because of the poor performance of the real estate market, the export growth slowdown, and high interest rates. But changes will occur in the second half of the year.

Many stock prices have fallen after companies bought back bonds before maturity.

A huge amount of expired corporate bonds due for payment in the last months of this year and the whole of 2023 and 2024 are putting great pressure on issuers.

VNDirect Securities has reported that the total value of corporate bonds issued in Q3 fell sharply by 50.5 percent compared with the previous quarter and 70.9 percent against Q3 2021 to VND60.635 trillion.

Although no enterprise has suffered bond default so far, individual investors who buy privately-placed corporate bonds have been facing many risks.

After cancellation of bonds issued by Tan Hoang Minh and the issuance of a new decree on bond market management, businesses have been rushing to buy back bonds before they become mature.

The Hoang Anh Gia Lai Group (HAG) of entrepreneur Doan Nguyen Duc eased its debt burden of VND6.6 trillion in bonds prior to Decree 65’s issuance.

The fresh and stringent legislative framework for the corporate bond market is slated to pave the way for a better debt sector in Vietnam, while the interests of issuers and investors could be safeguarded.

Concerns are increasing in the stock market after the State Bank of Vietnam (SBV) raised regulating interest rates and withdrew VND56 trillion (over US$2.3 billion) last week.

At a recent seminar on the corporate bond market, participants heard surprising statements made by members of the National Financial and Monetary Policy Advisory Council.

From the end of this year onwards, real estate businesses will face a worrisome period due to cash flow shortages as corporate bonds will begin to mature.

Vietnamese enterprises issued bonds worth a total ofVND262.25 trillion (more than US$11.2 billion) over the first seven months of 2022, a year-on-year decrease of 10.9 percent, announced the Ministry of Finance.

Many businesses cannot make payments for goods and services and have large debts, especially in the construction sector.

Many real estate businesses have returned to the bond channel to raise capital after the absence in April, mobilising thousands of billions of Vietnamese dong.

Outstanding corporate bonds have totaled VND1.4-1.5 million billion, with the demand for capital mobilization via this channel still growing.

Total outstanding value of corporate bonds by the end of April 2022 reached 320.4 trillion VND (13.8 billion USD), accounting for a small proportion of the country’s total outstanding credit of 2.86 percent, according to the State Bank of Vietnam.

The Ministry of Finance (MOF) has reported to the Prime Minister a list of the 20 biggest bond issuers and the 20 real estate firms which have had the largest amounts of bonds issued. Half of the bonds are unsecured.