Buybacks of pre-maturity corporate bonds increase by 5.8% in 2023
Vietnam's corporate bonds worth VND230.2 trillion (nearly US$9.5 billion) had been redeemed before maturity by December 25, an increase of 5.8% compared to the figure in 2022, according to the Ministry of Finance.
In addition, 78 enterprises have issued bonds worth VND245.9 trillion, down 27% over the same period in 2022. More than 93 % of the bond buyers were institutional investors with commercial banks accounting for 54.5%, and only 6.8% of the buyers were individual investors.
In 2023, the ministry submitted to the Government to promulgate Decree 08/2023/ND-CP regulating the offering and trading of corporate bonds on the domestic and international markets. The move created a legal basis to remove difficulties for businesses in issuing and paying due bonds, restoring market confidence, and ensuring the rights of bond owners.
In July 2023, the separate corporate bond trading system was officially launched, creating favourable conditions for investors.
According to the ministry, Vietnam’s corporate bond market has began to recover as some investors were interested in the market again when the interest rates of corporate bonds were higher than other investment channels.
However, the ministry recommended that investors, especially individual investors, should be cautious when investing in corporate bonds. They must fully access issuance documents, and analyse and evaluate risks thoroughly before buying bonds.
