Non-bank corporate bonds forecast to recover in year-end months

Prospects for credit growth and exchange rates will create favourable conditions for non-bank corporate bonds to recover in the final months of this year, analysts forecast.

Under an October 2024 corporate bond market report released recently, analysts of the rating agency FiinRatings said that the US Federal Reserve (Fed)'s first interest rate cut in four years was a positive sign for the Vietnamese exchange rate, after the State Bank of Vietnam (SBV) continuously sold the US dollar due to high capital withdrawal demand.

At the same time, the SBV also stopped net withdrawal through the treasury bill channel after the bidding session on August 23, 2024.

Non-bank corporate bonds forecast to recover in year-end months
The primary corporate bond market in September recorded a total issuance value of VNĐ45.3 trillion. Photo cafef.vn

FiinRatings’ analysts predict that the domestic exchange rate pressure will decrease, which will create favourable conditions for the SBV to buy the dollar to increase the nation’s foreign exchange reserves.

According to FiinRatings, the decrease in dollar interest rates will support international borrowing costs. Enterprises that do not hedge will benefit as the decrease in dollar interest rates will directly reduce loan interest rates.

Lower exchange rates also facilitate upcoming international borrowing or bond offerings.

In addition, FiinRatings’s analysts said, credit is on track to recover until the end of this year thanks to the corporate customer segment.

However, the analysts note that credit growth quality needs to be focused on. Banks’ outstanding loans at the end of September 2024 increased by 8.53 per cent compared to the beginning of this year, but was mainly driven by the corporate customer segment in the context of weak personal consumption demand.

"The ability to achieve the SBV's credit growth target by the end of this year will depend on the recovery of the real estate, energy and export sectors. However, as the credit growth has focused on the corporate customers, especially the real estate one, the quality of credit growth also requires due attention to avoid causing rising bad debt, which will increase risks for the banking system," FiinRatings’ analysts noted.

According to the report, the primary corporate bond market in September recorded a total issuance value of VNĐ45.3 trillion, with 39 issuances, down 27.5 per cent compared to the previous month but up 20.8 per cent compared to the same period last year.

The total bond issuance value in the first nine months of this year reached VNĐ313.6 trillion, recording an increase of 57.9 per cent compared to the same period last year.

Private and public issuance activities both recorded growth of 62.0 per cent and 28.1 per cent respectively over the same period last year. The rise shows the rapid recovery of this market.

However, according to FiinRatings, there has not been a clear recovery from the group of non-bank issuers. The majority of issuances in September 2024 and in the first nine months of this year were still from credit institutions, accounting for 82.9 per cent and 74 per cent of the total value of new corporate bonds, respectively.

Meanwhile, the issuance value of the non-bank group in September only reached VNĐ5.4 trillion, bringing the total issuance value in the first nine months of this year to VNĐ80 trillion, down 26.3 per cent compared to the same period last year.

Source: VNS

See also

Banking sector: Capital flows with no congestion

Banking sector: Capital flows with no congestion

(VEN) - So far, despite the difficulties in capital sources, the Vietnamese banking sector continued to maintain stability. Capital injection into the economy has been more favorable, with no congestion like in previous years. That is a great achievement of the sector in 2024.
Year-end surge in property bond issuance amid financial challenges

Year-end surge in property bond issuance amid financial challenges

As 2024 draws to a close, Vietnam's real estate industry is witnessing a notable surge in corporate bond issuances.
Vietcombank named most valuable brand in Vietnam

Vietcombank named most valuable brand in Vietnam

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has become the most valuable brand in Vietnam in 2024, according to a recently released report of Forbes Vietnam.
Many banks increase deposit interest rates in year-end period

Many banks increase deposit interest rates in year-end period

In the year-end period, savings interest rates have become a focal point, with many banks adjusting their offerings, showing clear divergence.
Deputy PM urges extra efforts to remove Vietnam from money laundering grey list

Deputy PM urges extra efforts to remove Vietnam from money laundering grey list

Deputy Prime Minister Ho Duc Phoc on December 12 urged ministries and sectors to do their utmost to implement the Financial Action Task Force (FATF)’s 17 recommendations to lift Vietnam out of its list of Jurisdictions under Increased Monitoring (grey list) related to money laundering.
Realty stocks see signs of recovery

Realty stocks see signs of recovery

The Vietnamese real estate market is signalling the end of a prolonged downturn, with notable signs of recovery in profitability. However the pace of revival remains measured, due to sluggish sales and limited improvements in consumer incomes.

See more news

Finance ministry to use AI in stock market surveillance

Finance ministry to use AI in stock market surveillance

The Ministry of Finance announced on Friday that it is researching using artificial intelligence (AI) tools to monitor transactions in the stock market.
Year-end profits put heavy pressure on banks

Year-end profits put heavy pressure on banks

(VEN) - As of the third quarter of 2024, only 11 out of 27 commercial banks have completed 75 percent or more of their pre-tax profit plans. Therefore, the year-end profit target is a huge pressure weighing heavily on their shoulders.
Party chief receives leader of Japan Bank for International Cooperation

Party chief receives leader of Japan Bank for International Cooperation

Party General Secretary To Lam hosted a reception in Hanoi on December 4 for Chairman of the Board of Directors of the Japan Bank for International Cooperation (JBIC) Maeda Tadashi.
Central bank increases credit growth limit for banks for second time this year

Central bank increases credit growth limit for banks for second time this year

The State Bank of Vietnam (SBV) on November 28 announced it would increase credit growth target for credit institutions, for the second time this year.
PM orders strengthening 2024 credit management

PM orders strengthening 2024 credit management

Prime Minister Pham Minh Chinh on November 27 ordered the Governor of the State Bank of Vietnam (SBV) to outline solutions aimed at improving credit management for 2024 in the face of evolving global economic challenges.
Bac Ninh Province meets business needs for year-end loans

Bac Ninh Province meets business needs for year-end loans

(VEN) - To ensure the sufficiency of loans for manufacturing businesses toward year’s end, many credit institutions in Bac Ninh Province have launched new credit packages with preferential interest rates.
Promoting credit for key agricultural sectors in Mekong Delta

Promoting credit for key agricultural sectors in Mekong Delta

The Mekong Delta contributes 95% of Vietnam’s rice exports and accounts for 60% of the country’s total seafood export value. Recently, fruit exports have shown strong growth, with various fruits entering new markets. However, numerous credit-related obstacles are creating challenges regarding agricultural production loans in the region.
HDBank wins three awards at Vietnam Listed Company Awards 2024

HDBank wins three awards at Vietnam Listed Company Awards 2024

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - HoSE: HDB) has received three prestigious awards at the Vietnam Listed Company Awards 2024, highlighting its leadership in the banking sector, as well as its dedication to transparency and governance.
VIB, Flywire partner to streamline cross-border payments for students from Vietnam

VIB, Flywire partner to streamline cross-border payments for students from Vietnam

Vietnam International Bank (VIB) has announced a partnership with Flywire, a global payments enablement and software company based in Boston, to enable Vietnamese payers to digitally pay international education-related fees in their local currency to higher education institutions all over the world.
Vietcombank issues 2 trillion VND worth of green bonds for first time

Vietcombank issues 2 trillion VND worth of green bonds for first time

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has successfully issued 2 trillion VND worth of green bonds, the first of its kind, to support eco-friendly projects.
View more
Latest Most Read
Kien Giang sets goals for industrial, export breakthroughs in 2025

Kien Giang sets goals for industrial, export breakthroughs in 2025

(VEN) - In 2025, Kien Giang Province sets a target to achieve the industrial production value of more than VND62.821 trillion, an increase of 10% compared to 2024 and export revenue of 1.07 billion USD, a year on year increase of 7%.
Party chief receives outgoing Australian ambassador

Party chief receives outgoing Australian ambassador

Party General Secretary To Lam hosted a reception for outgoing Australian Ambassador Andrew Goledzinowski in Hanoi on December 23.
HGS affirms ground service quality in aviation sector

HGS affirms ground service quality in aviation sector

(VEN) - During the 17-year establishment and development period, the Hanoi Ground Services Joint Stock Company (HGS) has affirmed its name and solid position in providing ground services for the Vietnamese aviation sector.
Banking sector: Capital flows with no congestion

Banking sector: Capital flows with no congestion

(VEN) - So far, despite the difficulties in capital sources, the Vietnamese banking sector continued to maintain stability. Capital injection into the economy has been more favorable, with no congestion like in previous years. That is a great achievement of the sector in 2024.
VAECO contributes to elevating Vietnamese aviation brand

VAECO contributes to elevating Vietnamese aviation brand

(VEN) - A subsidiary of Vietnam Airlines, the Vietnam Airlines Engineering Company Limited (VAECO), currently provides maintenance, repair and overhaul (MRO) services for the entire Vietnam Airlines fleet and over 80 other commercial airlines worldwide.
glorious tradition of the vietnam peoples army

Glorious tradition of the Vietnam People's Army

The Vietnam People’s Army (VPA) celebrate its 80th founding anniversary on December 22, 2024, a milestone in the army’s glorious history of serving and defending the nation. After 80 years of construction and development, the VPA has truly proven its revolutionary nature as an army “born from the people, fighting for the people, and serving the people”.
total fdi registered in vietnam hits 314 billion usd in january november

Total FDI registered in Vietnam hits 31.4 billion USD in January-November

As of November 30, 2024, the total newly registered capital, adjusted capital, and capital contributions or share purchases by foreign investors in Vietnam reached nearly 31.4 billion USD, up 1% increase compared to the same period last year.
first 11 months of 2024 import export turnover increases 154

First 11 months of 2024: Import-export turnover increases 15.4%

In the first 11 months of this year, Vietnam’s total import-export turnover reached 715.55 billion USD, up 15.4% against the same period last year, of which exports rose by 14.4% and imports up 16.4%. In the reviewed period, Vietnam enjoyed a trade surplus of 24.31 billion USD.
11 month agro forestry fishery exports exceed yearly target

11-month agro-forestry-fishery exports exceed yearly target

Vietnam’s total export turnover of agro-forestry-fishery products in the first 11 months of 2024 reached 56.74 billion USD, an increase of 19% over the same period in 2023. The sector has exceeded the set target of 54-55 billion USD for the whole year, and is confidently aiming for a new record of 60 billion USD.
hanoi achieves or exceeds 2324 socio economic targets for 2024

Hanoi achieves or exceeds 23/24 socio-economic targets for 2024

Hanoi achieves rather comprehensive results in its socio-economic development in 2024, with 23/24 targets completed or exceeded.
Amended Electricity Law proves MoIT’s institutional improvement success

Amended Electricity Law proves MoIT’s institutional improvement success

(VEN) - The amended Electricity Law has been recently passed by the National Assembly, marking a new milestone deeply influenced by the Ministry of Industry and Trade (MoIT) in enhancing the institutional framework in a “rapid” spirit.
Ministry proposes extending agricultural land tax exemption through 2030

Ministry proposes extending agricultural land tax exemption through 2030

The Ministry of Finance has proposed the National Assembly extend the agricultural land tax exemption until December 31, 2030, a move aimed at encouraging investments in agriculture and rural areas to improve the competitive edge of the agricultural products amidst deeper international integration.
Gov

Gov't targets to gradually make English second language at schools by 2030

The Government has approved a plan for international cooperation in the field of education and training until 2030 in order to improve the quality of workforce for socio-economic development.
Nine newly-adopted laws made public

Nine newly-adopted laws made public

The Presidential Office on December 20 announced the President’s order to make public nine new laws that were passed by the 15th National Assembly at its eighth session.
Success story behind 500kV Circuit-3 transmission line project

Success story behind 500kV Circuit-3 transmission line project

(VEN) - After over-seven-month construction, the 500kV Circuit-3 Quang Trach - Pho Noi power transmission line project, with its enormous workload, was completed on schedule, marking a milestone of the Vietnamese electricity sector in 2024.
Ministry proposes incentives for renewable energy projects

Ministry proposes incentives for renewable energy projects

The Ministry of Industry and Trade has proposed incentives to attract investments in renewable energy projects in a draft decree on implementing the Law on Electricity, which has recently been made public for comments.
The Era of Advancement for Vietnam Industrial Park

The Era of Advancement for Vietnam Industrial Park

(VEN) - The Vietnam Industrial Park Forum 2024, themed “The Era of Advancement for Vietnam Industrial Park”, is officially held in Ho Chi Minh City.
Vietnamese coffee sector working to meet EU Deforestation Regulation

Vietnamese coffee sector working to meet EU Deforestation Regulation

The Vietnamese Ministry of Agriculture and Rural Development (MARD) and the Sustainable Trade Initiative (IDH) organisation of the Netherlands on December 17 co-organised the handover ceremony of the pilot results for the database system for forests and coffee-growing areas in compliance with the EU Deforestation Regulation (EUDR).
Nghe An Southeast Economic Zone aims to attract 1 billion USD in FDI in 2025

Nghe An Southeast Economic Zone aims to attract 1 billion USD in FDI in 2025

The Southeast Economic Zone of Nghe An Province targets attracting around 1 billion USD in foreign direct investment (FDI) in 2025, heard at a conference held by the Nghe An Southeast Economic Zone Management Board in Vinh City on December 20.
Boeing aims to expand investment and cooperation in Vietnam’s defense sector

Boeing aims to expand investment and cooperation in Vietnam’s defense sector

Mr. Dale McDowall, Executive Leader, Defense and Aerospace, Singapore and Southeast Asia at Boeing's Defense, Space & Security, announced that Boeing aims to invest in Vietnam and expand cooperation in the defense sector.
Can Tho attracts non-state investment

Can Tho attracts non-state investment

Can Tho has been planned as a nuclear urban centre of the Mekong Delta region and received central government attention after the National Assembly issued a resolution on piloting special mechanisms for Can Tho’s development.
FDI remains vital contributor to boost economic growth

FDI remains vital contributor to boost economic growth

Foreign direct investment (FDI) remains one of the most vital drivers of national economic growth, recording remarkable results in 2024.
Banking sector: Capital flows with no congestion

Banking sector: Capital flows with no congestion

(VEN) - So far, despite the difficulties in capital sources, the Vietnamese banking sector continued to maintain stability. Capital injection into the economy has been more favorable, with no congestion like in previous years. That is a great achievement of the sector in 2024.
Year-end surge in property bond issuance amid financial challenges

Year-end surge in property bond issuance amid financial challenges

As 2024 draws to a close, Vietnam's real estate industry is witnessing a notable surge in corporate bond issuances.
Vietcombank named most valuable brand in Vietnam

Vietcombank named most valuable brand in Vietnam

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has become the most valuable brand in Vietnam in 2024, according to a recently released report of Forbes Vietnam.
Many banks increase deposit interest rates in year-end period

Many banks increase deposit interest rates in year-end period

In the year-end period, savings interest rates have become a focal point, with many banks adjusting their offerings, showing clear divergence.
Vietnam likely to face continued turbulent weather systems in 2025

Vietnam likely to face continued turbulent weather systems in 2025

Global temperatures are expected to rise next year, posing a significant risk of extreme and prolonged heat waves in Vietnam, Mai Van Khiem, Director of the National Centre for Hydro-Meteorological Forecasting (NCHMF), has predicted.
Nature-based projects help Mekong Delta fight climate change

Nature-based projects help Mekong Delta fight climate change

Nature-based projects implemented by the World Wildlife Fund (WWF) Vietnam in the Mekong Delta region have helped support local residents to adapt to climate change, heard at a workshop which is part of The Mekong Connect Forum 2024 held in Mekong Delta province of An Giang on December 17.
11 rare monkeys released back into wild in Nghe An

11 rare monkeys released back into wild in Nghe An

Eleven rare monkeys were released into the Pu Huong Nature Reserve in the central province of Nghe An on December 17.
Master Plan on Sustainable Exploitation and Use of Coastal Resources announced

Master Plan on Sustainable Exploitation and Use of Coastal Resources announced

(VEN) - The Master Plan on Sustainable Exploitation and Use of Coastal Resources for the 2021-2030 period, with a vision to 2050, was announced by the Ministry of Natural Resources and Environment on December 15 at a conference in Khanh Hoa Province.
Contracts worth 286.3 million USD inked at Vietnam Int’l Defence Expo 2024

Contracts worth 286.3 million USD inked at Vietnam Int’l Defence Expo 2024

Sixteen contracts worth 286.3 million USD in total, and 17 cooperation agreements between Vietnam’s defence industry units and businesses from various countries such as the US, India, France and Belgium were signed at the Vietnam International Defence Expo 2024 held in Hanoi from December 19-22.
Vietnam can partner with UK in developing nuclear power: Expert

Vietnam can partner with UK in developing nuclear power: Expert

Vietnam should research the feasibility of applying small modular nuclear reactor technology that the UK is currently working on, according to Dr. Dao Duc Cuong from the mechanical, engineering and energy faculty of the University of Bradford of the UK.
Vinaphone launches fastest 5G service in Vietnam

Vinaphone launches fastest 5G service in Vietnam

Vinaphone, the mobile network operator under the Vietnam Posts and Telecommunications Group (VNPT), has launched its official 5G service offering ultra-fast speed and unparalleled experience for both individual users and businesses alike.
Vietnam cooperates with Google to launch “Official Government Apps" feature

Vietnam cooperates with Google to launch “Official Government Apps" feature

The Authority of Information Security (AIS) under the Ministry of Information and Communications, in collaboration with Google, launched the "Official Government Apps" feature on December 20 to enhance user protection against fraudulent activities and ensure online safety in Vietnam.
30-day free rides on 17 bus routes connected to Metro Line 1

30-day free rides on 17 bus routes connected to Metro Line 1

(VEN) - There will be 200 train trips to transport passengers, and all passengers using the 17 electric bus routes will enjoy free travel for one month from the launch date of Ben Thanh - Suoi Tien Metro Line (Metro Line 1).
Bac Ninh: 28 additional 4-star-rated OCOP products

Bac Ninh: 28 additional 4-star-rated OCOP products

(VEN) - Bac Ninh province recently organized the second assessment and classification of OCOP products in 2024. Accordingly, 28 more OCOP products have been rated as 4-star. Thus, so far, the province has more than 100 OCOP 3-star- and 4-star-rated products.
HCM City’s first metro line launched after years of delay

HCM City’s first metro line launched after years of delay

Ho Chi Minh City marked a significant milestone in its long-awaited mass transit development on December 22, with the official launch of its first metro line after years of delay.
Aviation sector strengthens smuggling, commercial fraud and counterfeit goods control

Aviation sector strengthens smuggling, commercial fraud and counterfeit goods control

(VEN) - On the afternoon of December 20, the Civil Aviation Authority of Vietnam (CAAV) issued a document to relevant units regarding the implementation of a plan to combat smuggling, commercial fraud, and counterfeit goods before, during, and after the Lunar New Year (Tet) of 2025.
VAECO contributes to elevating Vietnamese aviation brand

VAECO contributes to elevating Vietnamese aviation brand

(VEN) - A subsidiary of Vietnam Airlines, the Vietnam Airlines Engineering Company Limited (VAECO), currently provides maintenance, repair and overhaul (MRO) services for the entire Vietnam Airlines fleet and over 80 other commercial airlines worldwide.
Petrovietnam keeping national “energy flame” ever burning

Petrovietnam keeping national “energy flame” ever burning

(VEN) - On November 27, in Hanoi, the Vietnam Oil and Gas Group (Petrovietnam) held a meeting to celebrate the 63rd anniversary of the Traditional Day of the Vietnamese oil and gas sector (November 27, 1961 - November 27, 2024). At the event, the Group praised outstanding member units for exceeding financial targets and implementing corporate culture in the first 11 months of 2024.
Vietnamese products crave out a niche in UK market: Official

Vietnamese products crave out a niche in UK market: Official

Vietnamese goods have steadily established a strong presence in the UK, with exports to this demanding market continously growing since 2021, said Hoang Le Hang, First Secretary of the Vietnam Trade Office in the UK.
Viettel

Viettel's hi-tech products meets standards for supply to Malaysia

The Viettel High Technology Industries Corporation (VHT), a subsidiary of the the Viettel Military Industry and Telecoms Group (Viettel), announced on December 20 that it has received a certification from the Ministry of Defence, and the Army of Malaysia, recognising that Viettel's military communication products meet standards to be supplied to the Malaysian Army.
tcty-dau-khi-vn-pv-power-2022
Fireworks to light up sky over Hanoi on New Year celebration

Fireworks to light up sky over Hanoi on New Year celebration

The capital city of Hanoi is set to welcome the New Year 2025 with spectacular firework displays at five locations and 30 venues for the Lunar New Year (Tet) Festival.
Vietnam’s high-end fashion targets Chinese market

Vietnam’s high-end fashion targets Chinese market

An increasing number of Chinese celebrities are choosing high-end Vietnamese fashion, creating new opportunities for Vietnamese designers to make their mark in the 1.4 billion-strong market.
Enduring tradition of Ha Nhi ethnic minority group

Enduring tradition of Ha Nhi ethnic minority group's costumes

Nestled in the rugged landscapes of northern mountainous Dien Bien province, Ha Nhi ethnic minority group in Sin Thau, Sen Thuong, Leng Su Sin and Chung Chai communes of Muong Nhe district have preserved their traditional costumes through generations, ensuring that its significance remains as vital today as it was in the past.
Legendary band Boney M to thrill Vietnamese audiences this Christmas

Legendary band Boney M to thrill Vietnamese audiences this Christmas

World renowned disco band Boney M are set to enliven the Central Highland province of Lam Dong alongside celebrated singers and bands from the 1970s and 1980s, including Joy and Samantha Fox, during the Da Lat spring concert which will be held on December 21.
Vietnam a green, attractive destination

Vietnam a green, attractive destination

(VEN) - Vietnam is seeking to turn tourism into a spearhead economic sector, and has chosen green, sustainable tourism development as an important solution to reach this target.
Mekong Delta tourism continues to surge

Mekong Delta tourism continues to surge

The Mekong Delta, one of Vietnam's key tourism regions, has worked hard in developing new products and promoting its offerings this year, achieving impressive results in visitor numbers and revenue from tourism and related services.
Ben Thanh-Suoi Tien metro line - catalyst for HCM City

Ben Thanh-Suoi Tien metro line - catalyst for HCM City's tourism development

The official launch of the first metro line in Ho Chi Minh City, which connects Ben Thanh Market in district 1 with Suoi Tien Theme Park in Thu Duc city, not only marks a significant milestone in its urban transport system but add a catalyst for the city’s stronger tourism development.
Overseas tourism promotion: Breakthrough in market connectivity

Overseas tourism promotion: Breakthrough in market connectivity

(VEN) - In 2024, overseas tourism promotion activities achieved groundbreaking effectiveness in connecting tourist markets.
Mobile Version