The corporate bond market continued its robust recovery with an average transaction value of VND11.54 trillion (US$453.5 million) per session, up 77% compared to the previous year.
Vietnam saw 174 private placements of corporate bond issues totaling VND161.5 trillion in the first seven months of the year, a 2.6-fold increase over the same period last year, showed data from the Ministry of Finance.
The Vietnamese economy is likely to expand by close to 6% in 2024, driven by a recovering export sector, robust foreign direct investment, and policy support, the International Monetary Fund (IMF) said on June 26.
Deposit interest rates are expected to remain low until the middle of 2024, with a slight increase anticipated thereafter due to higher credit demand, analysts said.
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.
The corporate bond market is "warming up" and recovering thanks to effective support policies, according to insiders.
The State budget revenue was estimated at over VND1,223 trillion (US$50.8 billion) in the first nine months of this year, or 75.5% of the estimate, marking an annual decrease of 8.3%, according to the Ministry of Finance.
The number of new firms established in the January-July period, at 89,600, was up 0.2% from the same period last year, but their total registered capital reduced by 17.1% to VND834 trillion (US$35.2 billion), reported the General Statistics Office.
The total value of corporate bond issuances was recorded at VND42.783 trillion (US$1.86 billion) in the first half, according to data compiled by the Vietnam Bond Market Association (VBMA) from the Hanoi Stock Exchange (HNX) and the State Securities Commission (SSC).
The government bond yields in Vietnam have dropped across all tenors from March to June, resulting in the largest downward shift in the country’s bond yield curve among Asian nations, with an average decline of 136 basis points.