The current situation and fundamental solutions to restore and sustainably develop the Vietnamese corporate bond market

Abstract

In the past ten years, especially since 2017, the Vietnamese corporate bond market has made significant progress in terms of scale, structure of issuing companies, and product types. This has become an important channel for medium- and long-term capital mobilisation for businesses. To ensure the sustainable and effective development of the bond market as well as implement the policy of balancing between the capital market and the monetary and credit market, the government has issued regulations and policies on the offering and trading of corporate bonds. However, in recent times, the issuance of corporate bonds has revealed many limitations and negative aspects that have disrupted the market, causing a decline in investor confidence and creating enormous maturity pressure on businesses in 2024. This article studies the basic issues of corporate bonds and analyses the overall Vietnamese corporate bond market, highlights some noteworthy current status, evaluates the government solutions, and provides some recommendations.