VIETNAM BOND MARKET REPORT – MAY 2025: GOVERNMENT BOND YIELDS CONTINUE UPWARD TREND, CORPORATE BOND MATURITY PRESSURE ACCELERATES IN Q3/2025
Primary government bond issuance dropped sharply in May, with new issuance totaling only VND 18,049 billion (–57.5% MoM); the auction success rate fell to its lowest level YTD (46.5%). Winning yields and secondary market yields continued to edge up, reflecting ongoing upward pressure from global yield trends and investor caution.Government bond market liquidity remained solid, with average daily trading value at VND 14,463 billion (+14.4%), primarily from outright transactions. Foreign investors maintained net buying activity, helping stabilize liquidity and support market sentiment.
The real estate sector accelerated bond buybacks in May. New corporate bond issuance decreased (VND 34,500 billion, –21.6% MoM), but early redemption activity picked up, particularly among real estate and banking groups. Cumulatively over the first five months, corporate bond issuance reached more than VND 80,500 billion (+26.2% YoY); early buybacks totaled nearly VND 54,900 billion (+6.8%).
Corporate bond maturity pressure will rise in the coming quarter. In Q3/2025, the real estate group is expected to face significant maturity pressure with VND 42,000 billion due (57% of total maturities). The value of overdue corporate bonds rose to VND 53,600 billion, with real estate accounting for nearly 60%.
Liquidity in the secondary corporate bond market improved but remained polarized. Total trading value in May reached VND 9,890 billion (+10.1%), mainly in the 1–3 year tenor segment among financial institutions. Real estate bonds were traded mostly at longer tenors (over 3 years), highlighting a clear divergence in risk appetite across sectors.
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