Banks should be allowed to purchase corporate bonds issued for debt restructuring: HoREA
The HoREA said that the current regulation is inconsistent with another regulation that allows companies to issue bonds for that purpose.
“It is essential that commercial banks be allowed to purchase corporate bonds for debt restructuring, particularly in light of the high volume of corporate bonds reaching maturity next year,” the HoREA said.
The move is necessary to provide relief to companies facing the pressure of significant corporate bond maturities in the near future, according to HoREA.
![]() |
According to data from HoREA, total corporate bonds set to mature in 2024 will reach VNĐ329.5 trillion (US$13.5 billion), the highest in three years and up from VNĐ144.5 trillion last year and VNĐ271.4 trillion this year.
The fourth quarter of this year will see VNĐ65.5 trillion of bonds maturing, the highest volume of matured bonds for all of 2023.
The last two months of the year will see over VNĐ41 trillion of bonds maturing. Almost 80 per cent of these maturing bonds are from the real estate sector, according to HoREA.
Experts have warned the pressure of bond repayment will continue next year as many issuers, mostly property developers, grapple with capital shortages and business difficulties.
Financial challenges have led various enterprises to seek negotiations with bondholders to extend bond redemption dates amid a sluggish property market and reduced cash flows.
According to data from the Hanoi Stock Exchange (HNX) by VNDirect, over 60 issuers have successfully negotiated to extend bond repayment dates for a total of VNĐ107 trillion as of October 27.
The Ministry of Finance has urged issuers to fulfill their repayment obligations and ensure timely payments.
The Government in March issued a decree which has allowed issuers to extend debt maturities by up to two years and use other assets for bond payments, subject to bondholder approval.
As a result, over VNĐ42 trillion ($1.77 billion) worth of corporate bonds were rolled over in the second quarter of the year.
Recently, major property firm Novaland has proposed using assets from The Grand Manhattan project in downtown HCM City to settle outstanding debt from three bond packages.
The firm also plans to use properties from luxury developments in Bình Thuận Province to settle outstanding debt as it has overdue payments for several bond packages due in February and May with a remaining value exceeding VNĐ1.58 trillion.
Local media have reported that nearly 70 companies have reported delinquencies amounting to VNĐ176.1 trillion, with the real estate sector making up the majority.
While extending bond maturity dates presents risks and challenges, such negotiations require agreement from all parties involved, including bondholders, investors, and creditors.
Lê Hoàng Châu, chairman of HoREA, pointed out that few bondholders accepted the option of receiving other assets for bond repayments, citing overpricing and legal issues.
The corporate bond market has boomed in recent years due to increased capital demand from property developers and banks.
However, market sentiment shifted unexpectedly in October of last year following the arrest of the Vạn Thịnh Phát Group’s chairwoman in a case related to bond market fraud.
The real estate sector holds the largest outstanding bond value at VNĐ396.3 trillion, or 33.8 percent of total bonds, as reported by S&P Global Ratings.
Without improvement in the property sector, further defaults may loom, warned the report.
Prime Minister Phạm Minh Chính has ordered the State Bank of Vietnam and the Ministry of Finance, which are primarily responsible for managing bond defaults, to improve their management in order to revive the troubled market.
See also

14th National Party Congress’s draft documents more revolutionary, action-oriented, highly feasible: PM
16:31 | 16/04/2025 Policy

Party chief requires no disruptions to operations throughout restructuring process
16:12 | 14/04/2025 Policy

District-level local governments to cease operations from July 1: draft law
16:53 | 13/04/2025 Policy

Australian scholar praises Vietnam’s remarkable 50-year transformation
16:28 | 12/04/2025 Policy

Vietnam takes swift, proactive actions in response to new US tariff policy
16:49 | 08/04/2025 Policy

A decree, a statement: Part 2: Sending a strong message
09:06 | 02/04/2025 Policy
See more news

A decree, a statement: Part 1: A draft strategic decree and strategic trust
08:30 | 02/04/2025 Policy

Vietnam wants to strengthen multi-faceted cooperation with Belgium: State President
14:02 | 01/04/2025 Policy

52 provincial-level administrative units to be reorganised: draft resolution
16:06 | 27/03/2025 Policy

MoF seeks feedback on VAT cut plan to boost economy
16:17 | 26/03/2025 Policy

Ministry proposes tripartite coordination mechanism to manage cryptocurrency exchanges
16:34 | 24/03/2025 Policy

Decree on foreign investment in Vietnamese financial institutions amended
15:30 | 20/03/2025 Policy

Pilot cryptocurrency exchange: comprehensive and balanced approach
18:57 | 15/03/2025 Policy

Binh Dinh requested to take bold actions for administrative restructuring
16:42 | 13/03/2025 Policy

PM urges timely allocation of state investment funds
17:39 | 06/03/2025 Policy

New decree incentivises renewable, new energy development
16:58 | 05/03/2025 Policy

Historical significance of International Workers’ Day
09:22 | 28/04/2025 Society

Imexpharm sets breakthrough growth goals at 2025 shareholders meeting
10:00 | 27/04/2025 Vietnamese Brands

Streamlining State apparatus to expand development space
13:31 | 26/04/2025 Society

Vietnam-Laos relations vital to revolutionary cause in each country: State leader
10:05 | 26/04/2025 Cooperation

US calls tariff talks with Vietnam productive
09:02 | 26/04/2025 News and Events
Multimedia

Proposed names for 34 provincial-level administrative units after mergers
16:42 | 16/04/2025 Infographic

Vietnam-China Comprehensive Strategic Cooperative Partnership
15:55 | 14/04/2025 Infographic

Vietnam's economy thrives in Q1 2025
16:45 | 12/04/2025 Infographic

Infographic: Gold prices fluctuate following US retaliatory tariff announcement
21:45 | 04/04/2025 Infographic

Seven key missions of the National Data Association
20:07 | 30/03/2025 Infographic

14th National Party Congress’s draft documents more revolutionary, action-oriented, highly feasible: PM
16:31 | 16/04/2025 Policy

Party chief requires no disruptions to operations throughout restructuring process
16:12 | 14/04/2025 Policy

District-level local governments to cease operations from July 1: draft law
16:53 | 13/04/2025 Policy

Australian scholar praises Vietnam’s remarkable 50-year transformation
16:28 | 12/04/2025 Policy

Hanoi to develop 254-million-USD industrial cluster
21:13 | 19/04/2025 Industry

Vietnam sets ambitious targets in revised national power development plan
18:56 | 17/04/2025 Industry

Prime Minister urges COMAC to support Vietnam in developing aviation industry
17:12 | 14/04/2025 Industry

Steel industry seeks solutions amid tariff "shock"
17:12 | 13/04/2025 Industry

Ho Chi Minh City’s FDI rebound attracts high-tech giants
21:23 | 19/04/2025 Investment

Korean firms encouraged to invest more in Vietnam’s energy sector
16:31 | 15/04/2025 Investment

Public investment aimed to drive Vietnam’s economic growth
10:48 | 15/04/2025 Investment

Hue calls for investment in the Chan May – Lang Co Economic Zone
23:36 | 11/04/2025 Investment

Remittances to HCM City reach over 2.41 billion USD in first quarter
08:21 | 20/04/2025 Finance-Banking

National committee meets to accelerate ODA, concessional loan disbursement
14:43 | 15/04/2025 Finance-Banking

Vietnam accelerates rollout of 500 trillion VND credit package for infrastructure and technology firms
15:36 | 12/04/2025 Finance-Banking

Hong Kong paves way for Vietnam–China finance link
19:25 | 10/04/2025 Finance-Banking

Vietnam's carbon market: Prudent approach to avoid costly outcomes
08:53 | 18/04/2025 Environment

Moc Chau Milk centers on green development and growth
16:06 | 17/04/2025 Environment

Extra efforts requested to address forest fire consequences in Quang Ninh
16:56 | 16/04/2025 Environment

Hanoi to host major green growth summit this month
16:44 | 11/04/2025 Environment

PM applauds youth entrepreneurship at National Startup Day for Students
21:40 | 20/04/2025 Science - Technology

Nuclear energy development to facilitate green transition: Conference
22:10 | 18/04/2025 Science - Technology

HCM City seeks stronger hi-tech cooperation with US, Japan, RoK
16:47 | 15/04/2025 Science - Technology

Da Nang, RoK to train next generation of Vietnamese software experts
13:24 | 11/04/2025 Science - Technology

Historical significance of International Workers’ Day
09:22 | 28/04/2025 Society

Streamlining State apparatus to expand development space
13:31 | 26/04/2025 Society

Vietnam steadily marches into new era of growth
16:35 | 21/04/2025 Society

Workers proactively enhance productivity in new era
15:32 | 21/04/2025 Society

Imexpharm sets breakthrough growth goals at 2025 shareholders meeting
10:00 | 27/04/2025 Vietnamese Brands

Petrovietnam: New milestone - New vision for sustainable development
16:21 | 21/04/2025 Vietnamese Brands

Vietnam Oil and Gas Group renamed Vietnam National Industry - Energy Group
22:18 | 10/04/2025 Vietnamese Brands

Vietnamese enterprises float products at world's largest startup fair in India
21:59 | 05/04/2025 Vietnamese Brands

Vietnamese cultural values introduced to international friends in Mexico
20:55 | 30/03/2025 Culture

Hung Kings’ Festival 2025: a grand celebration of culture and heritage
15:21 | 30/03/2025 Culture

Vietnam works to seek UNESCO status for Binh Dinh martial arts
18:00 | 29/03/2025 Culture

Nghe An to host ASEAN exhibition this May
16:47 | 24/03/2025 Culture

Digitization key to tourism breakthroughs
09:15 | 24/04/2025 Tourism

Highland products, soul of Son La’s community-based tourism
09:34 | 17/04/2025 Tourism

Vietnam’s scenic landscapes attract Hollywood filmmakers
15:15 | 30/03/2025 Tourism

Positioning unique tourism products to enhance attractiveness of Vietnamese cities
17:56 | 29/03/2025 Tourism