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Vietnam Bond Market Report – Jun 2025: Issuance activity accelerates

Primary government bond (GSB) issuance rebounded strongly, reaching 30,473 billion VND (+68.8% MoM), with the successful auction rate improving to 61.6% on the back of renewed investor demand. The State Treasury raised the auction target to 49,500 billion VND, underscoring efforts to accelerate capital mobilization after a subdued May. For the first six months, cumulative GSB issuance hit 201,330 billion VND, fulfilling 40.3% of the annual plan.
The average winning yield for 10-year GSBs in June 2025 stood at 3.14% per annum, up by 7bps MoM and 40bps YoY, reflecting rising inflation expectations and increased public spending.
Secondary GSB market liquidity remained robust, averaging nearly 17,000 billion VND per session (+17.3% MoM), with trading activity most active in long-term tenors (15–30 years). The yield curve continued to shift upwards, with 10-year GSB yields climbing to 3.31% at the end of June.
Foreign investors recorded a net purchase of 340 billion VND in June, bringing the 6-month cumulative net buying to nearly 2,440 billion VND, providing key support to the GSB market and helping to contain upward pressure on yields.
Corporate bond (CB) issuance activity accelerated sharply, with 72 new issuances in June 2025 totaling 95,303 billion VND (+37.8% MoM, +30.1% YoY); the banking sector accounted for 82.4% of total value, mainly in the 2–10 year tenor range. Notable deals included: ACB (24,850 billion VND), MBB (14,750 billion VND), TCB (13,500 billion VND); coupon rates ranged from 4.95% to 6.48% depending on tenor.
Early redemption activity surged to 39,264 billion VND (+80.6% MoM), with banks making up 90.4%, primarily replacing high-yield legacy bonds with lower-cost funding.
The secondary CB market improved, with trading volume reaching 116,184 billion VND (+6.6% MoM); the real estate sector led, with transactions focused on tenors above 3 years.
Credit risk remains present in the real estate sector, as eight companies reported delays in principal/interest payments during the month, most notably: Hung Thinh (4,000 billion VND), R&H (3,000 billion VND), BNP Global (2,100 billion VND). In July 2025, 17,500 billion VND of CBs are expected to mature, with real estate accounting for approximately 10,000 billion VND.