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Vietnam corporate bond market slows as interest rates rise

Vietnam corporate bond market slows as interest rates rise

Vietnam’s corporate bond market slowed in the third quarter of 2026, with issuance value falling 26% from the previous quarter, while issuance yields continued to rise across all sectors.

Bond issuance slows

According to a recent report by S&I Ratings, Vietnam’s corporate bond market recorded 153 successful issuances in the third quarter, with a total value of VND179.4 trillion ($6.93 billion), down 26% from the second quarter.

The trend mirrored 2025, when issuance surged in Q2 following a sluggish start to the year before correcting in Q3.

Year-on-year, issuance value in Q3 rose 7.8%, while the cumulative increase for the first nine months reached 6.7%.

Notably, public bond offerings performed strongly, with 16 successful issuances in Q3 worth a combined VND31.6 trillion ($1.22 billion), up 55% year-on-year and the highest level on record.

Commercial banks continued to dominate this channel, accounting for eight of the 16 offerings. Individual issuances were mostly valued at VND1 trillion to VND3 trillion ($115.93 million), while Agribank alone successfully issued VND15 trillion.

In the first nine months, total corporate bond issuance reached VND464.1 trillion ($17.93 billion). During the same period, bonds worth VND132.8 trillion ($5.13 billion) matured, up 5.7%, while early bond buybacks totalled VND228.6 trillion, down 4.5%. Net issuance value was reported at VND102.6 trillion ($8.83 billion).

As of the end of September 2026, outstanding corporate bonds totalled approximately VND1,540 trillion ($59.51 billion), up 7.1% from the end of 2025.

According to S&I Ratings, real estate bond issuance corrected in Q3 after surging in Q2. The number of successful issuances fell from 43 to 21, while total issuance value dropped 55% quarter-on-quarter.

The decline was mainly driven by changes in fundraising activity among major corporate groups. Issuance by the Vingroup group fell to VND16 trillion ($618.3 million) in Q3 from VND61 trillion in the previous quarter. Meanwhile, the Masterise group maintained issuance at VND23.5 trillion ($908.14 million) in Q3.

The ratings agency said the two corporations typically account for as much as 80% of total issuance by the real estate sector, giving their fundraising activity a significant influence on the industry's overall performance.

Despite the sharp quarterly decline, real estate bond issuance in Q3 was still up 27% from a year earlier. For the first nine months as a whole, issuance increased 121% year-on-year.

S&I Ratings noted the real estate market was facing difficulties amid rising interest rates, which were affecting project implementation schedules and companies' financing costs. However, substantial funding requirements for project development would remain a key driver of real estate firms' bond fundraising in the coming period.

In the banking sector, total bond issuance reached VND120 trillion ($4.64 million) in Q3, up 11.8% year-on-year and 7% from Q2. However, cumulative issuance in the first nine months remained 20% below the same period in 2025.

With banks accounting for around two-thirds of total corporate bond issuance, the sector's decline was also a key factor behind the market's slower growth.

Issuance rates approach 2022-2023 peaks

Corporate bond issuance rates continued to rise across all sectors in Q3/2026. Coupon rates had increased by an average of around 250 basis points from their 2025 lows. However, the pace of increase slowed considerably in Q3 as rates approached the peaks recorded in 2022-2023.

For banks, the average issuance rate reached 8.85% per year in Q3, exceeding the 2022 average of 8.7%. However, it remained below the previous peak of 9.7%.

Bank bond coupon rates in Q3 generally ranged from 8% to 9.7% per year. Some issuances carried rates of 10% or higher, including Sacombank bonds with a fixed coupon of 10% and PVcomBank bonds paying a rate linked to the average 12-month savings deposit rate for individual customers plus a margin of 4.6 percentage points, equivalent to around 10.4% at the time of the report.

Meanwhile, issuance rates for real estate companies and firms in other sectors also rose sharply, reaching around 12.5-13% per year. Even so, these rates remained below the peak range of 14-14.5% recorded in 2022-2023.

The trend highlights continued increases in bond fundraising costs as interest rates approach levels last seen during the previous high-rate period.

Maturity pressures to rise in late 2026 and 2027

Maturity pressures in Vietnam's corporate bond market are expected to increase significantly in Q4/2026. S&I Ratings estimates that bonds worth around VND93 trillion ($3.59 billion) will fall due for repayment during the quarter, the highest amount for any quarter this year. Real estate companies account for approximately VND46.9 trillion ($1.81 billion), or nearly half of the market's total maturities.

The pressure is expected to intensify further in 2027. Total corporate bonds maturing next year could reach around VND276 trillion ($10.67 billion), up 22% from 2026. Real estate companies alone are expected to face approximately VND156 trillion ($6.03 billion) in maturities, accounting for 57% of the market total.

Against this backdrop, new bond issuance will serve not only to finance projects but also to play an important role in restructuring existing debt.

Beyond refinancing pressures, the economy's medium- and long-term funding needs are entering a period of strong growth to support real estate developments, urban areas, transport infrastructure, energy and industrial projects. Corporate bonds are therefore expected to remain an important funding channel, providing additional medium- and long-term capital to the economy.

However, the market's ability to absorb new issuance could be affected by domestic and international interest rate movements. Persistent inflation risks, coupled with international government bond yields remaining elevated, could keep interest rates high at least through the first half of 2027.

For bond issuers, this would mean higher financing costs, particularly for companies with high leverage or substantial funding needs.

S&I Ratings said the medium-term outlook for Vietnam's corporate bond market remained positive, supported by strong corporate funding demand and mounting refinancing pressures.

Nevertheless, with interest rates still high, the market would need more time to continue restructuring on a sustainable basis, attract a broader range of investors, and strengthen its role as a key source of medium- and long-term financing for the economy.


Source: Kha Moc, Thai Ha

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Central Vietnam province Lam Dong eyes 101-km electric rail network

Central Vietnam province Lam Dong eyes 101-km electric rail network

Authorities in Vietnam’s central province of Lam Dong have proposed building six urban electric rail lines spanning over 101 km to connect its famous tourist attraction Da Lat with Lien Khuong International Airport and other major destinations, as part of a long-term urban transport plan through 2050.

The proposal is included in the master plan for five Da Lat wards to 2050, which is under consultation, the provincial government said last week.

The proposed network would comprise six lines with a total length of 101.43 km, using either light rail or monorail technology. The routes would link central Da Lat with Lien Khuong airport and popular destinations such as Suoi Vang Lake, LangBiang Mountain, Tuyen Lam Lake, and the Valley of Love.

The line connecting Da Lat railway station with Lien Khuong airport in Duc Trong commune is prioritized for construction before 2030, providing an additional public transport option for passengers traveling between the airport and the downtown city. The other five lines are planned for development after 2030.

The proposed routes include an 18.5-km line from Da Lat station to Suoi Vang, an 8.55-km line from An Kroet junction to LangBiang, and a 15.78-km line linking Da Lat station with Tuyen Lam lake. Two other routes would connect Da Lat station with the Valley of Love and Tung Lam junction.

The plan also calls for restoring the 84-km Thap Cham-Da Lat railway, which uses a 1,000-mm track gauge, to support tourism and improve connections between Da Lat and the south central coast.

The proposed network is expected to ease pressure on roads, connect tourist destinations with urban gateways and help preserve Da Lat’s landscape, according to the planning consultant.

The master plan covers five wards: Xuan Huong-Da Lat, Cam Ly-Da Lat, Lam Vien-Da Lat, Xuan Truong-Da Lat, and Lang Biang-Da Lat, with a total area of 68,088 hectares.

Situated on a plateau around 1,500 meters above sea level, Da Lat enjoys year-round cool weather that stands in contrast to Vietnam's tropical climate. It used to be a summer hideout for French officials during the colonial time who built villas in the hills to escape the heat and humidity of the lowlands. Da Lat is also known as one of Vietnam’s biggest flower-growing regions.

On July 1, 2025, Lam Dong province was merged with Dak Nong and Binh Thuan provinces to form the new Lam Dong province which borders Dak Lak province, Dong Nai city, Khanh Hoa province, Ho Chi Minh City, Cambodia, and the East Sea.

In the first 10 months of this year, Lam Dong welcomed nearly 20.7 million tourist arrivals, including 1.2 million foreign visitors, generating VND57.51 trillion ($2.24 billion), according to the provincial tourism watchdog.


Consortia involving TotalEnergies, AG&P vie for $1.5 bln southern Vietnam LNG power plant

Consortia involving TotalEnergies, AG&P vie for $1.5 bln southern Vietnam LNG power plant

Three investor groups have registered to develop the VND39.87 trillion ($1.55 billion) Long Son LNG-fired power plant in Ho Chi Minh City, highlighting growing competition for opportunities in Vietnam’s gas-fired power sector.

The project will cover 42.56 hectares outside the Long Son Petrochemical Industrial Park in Long Son commune.

According to the bid-opening record, the three applicants are a consortium of T&T Group and France’s TotalEnergies Gaz & Electricite Holdings (T&T-TEGEH); a partnership between EVNGENCO3 and Singapore-based AG&P Terminals & Logistics (EVNGENCO3-AG&P LNG); and Ngoc Long Hai Son Group JSC.

The project is included in the revised eighth national power development plan (PDP VIII). It is designed to use combined-cycle gas turbine technology, with imported liquefied natural gas as its primary fuel.

LNG will be supplied through pipelines connecting the Cai Mep LNG terminal to the Long Son area and the planned Southeast Vietnam LNG terminal system. The plant is expected to connect to the 500-kV grid through a transmission line to the Bac Chau Duc 500-kV substation, with commercial operation targeted for June 2031.

It will be one of Vietnam's largest LNG power projects, playing a crucial role in ensuring energy security for the southern region and nationwide while supporting the energy transition through 2050.

Among the three applicants, the T&T-TEGEH consortium stands out for combining a Vietnamese private-sector investor with experience in energy development and an international partner with LNG expertise.

T&T Group is a Vietnamese conglomerate expanding its investments in the energy sector. Through its core energy unit, T&T Energy Group, it is developing power projects with a total capacity of around 2,900 MW, of which nearly 1,200 MW is already commercially operational.

In gas-fired power, T&T is working with South Korean partners to develop the first phase of the Hai Lang LNG power project in the central province of Quang Tri, with a capacity of 1,500 MW.

On September 10, 2026, T&T Energy Group and TotalEnergies Gas & Power Activities signed a memorandum of understanding in Paris to cooperate on the Long Son project.

Under the agreement, TotalEnergies will lead project financing and act as the primary LNG supplier at a competitive price. Meanwhile, T&T Energy will manage domestic regulatory approvals, government relations, and local administrative procedures.

TotalEnergies Gas & Power Activities is part of France-based TotalEnergies SE, a global integrated energy group. In Vietnam, TotalEnergies has supplied LNG to the Thi Vai terminal, which serves as a fuel source for the Nhon Trach 3 and 4 power plants, Vietnam’s first LNG power facility.

Meanwhile, the EVNGENCO3-AG&P LNG consortium combines domestic power generation experience with expertise in gas infrastructure, logistics, and LNG supply chains.

EVNGENCO3, under state utility EVN, operates in power generation and has experience managing and operating large-scale power plants in Vietnam. It recently partnered with Thuan Hai Transport Services JSC to become the sole applicant for the VND7.1 trillion ($276.9 million) Ninh Binh flexible power plant project.

Its partner, AG&P Terminals & Logistics, operates in gas infrastructure and logistics, with a focus on LNG supply chains.

The competition among three applicants underscores investor interest in Vietnam’s LNG-fired power market. However, registration is only the initial stage of the investor selection process. The candidates’ financial and technical capabilities, as well as their ability to meet the project’s implementation requirements, will be assessed in subsequent stages.


Vietnam, US boost agricultural trade cooperation

Vietnam, US boost agricultural trade cooperation

Vietnam and the United States continue to strengthen balanced two-way trade, technology transfer, and investment in supply chain development.

Within the framework of trade commitments established for the 2025-2027 period, Vietnam has encouraged businesses to diligently implement purchasing agreements with US partners totaling approximately $3 billion.

The information was announced during a bilateral meeting between Vietnamese Deputy Minister of Agriculture and Environment Dang Ngoc Diep and Deputy Secretary of the US Department of Agriculture (USDA) Stephen Vaden on November 10, coinciding with the largest US agricultural trade promotion delegation's visit to Vietnam.

Breakthroughs in agricultural trade

According to Mr. Diep, all agreements have been executed, significantly exceeding the committed value. In the latter half of 2025 alone, the total import turnover of products under signed memoranda of understanding reached approximately $2.1 billion. For the first nine months of 2026, the value of purchases amounted to approximately $2.8 billion, of which about $2.5 billion comprised committed items including milk and dairy products, livestock products, fruits and vegetables, corn, soybeans, animal feed, and raw timber.

In addition to promoting imports, Deputy Minister Diep requested the US to address certain market access issues for passion fruit and to promptly approve hot vapor treatment measures for fresh fruit exports to the US.

Acknowledging the significant growth aimed at balancing bilateral trade, USDA Deputy Secretary Stephen Vaden noted that amidst negotiations for a reciprocal trade agreement, the US had proposed Vietnam increase its annual import turnover of goods by an additional $1 billion. In reality, after only 10 months of 2026, Vietnam had already imported approximately $3.6 billion, not including about $1.4 billion in cotton imports.

Mr. Vaden also praised the agricultural trade relationship between the two countries, stating that agricultural products from both Vietnam and the US are favored by consumers in each nation.

The delegation includes a large number of producers of specialty agricultural products, fruits, and vegetables, with many businesses from California, he said, adding that the presence of these businesses demonstrates the US's desire to expand market access opportunities in Vietnam and to foster a more substantive trade relationship.

Promoting cooperation in biotechnology and food safety

During the meeting, both sides also discussed enhancing scientific and technological cooperation.

"This could become a new pillar," Mr. Diep said. "Vietnam wishes to promote cooperation with the US in areas such as crop varieties, biotechnology, artificial intelligence, big data, precision agriculture, and digital transformation."

Specifically, the Deputy Minister proposed that both sides research and implement cooperation programs and technology transfer for disease-resistant, drought-tolerant, and salt-tolerant crop varieties, suitable for climate change adaptation.

In response to this proposal, Deputy Secretary Vaden affirmed the US's readiness to cooperate in providing Vietnam access to biotechnology. He commended Vietnam's interest in applying scientific principles in agricultural management and production, and welcomed the initiative to facilitate US companies in bringing research and development (R&D) activities to Vietnam.

He also expressed hope that Vietnam would continue to collaborate with the US in promoting a science-based approach to biotechnology, thereby expanding the application of modern agricultural technologies.

Regarding food safety, Mr. Vaden highlighted similarities in the work programs of both ministries, particularly concerning Salmonella control and DNA residue testing requirements for imported products. The US expressed its desire to continue discussions with Vietnam on regulations related to Salmonella and DNA residue testing, aiming to reduce instances of rejected shipments while ensuring state management responsibilities for food safety.

Currently, the USDA is developing a new framework for Salmonella risk assessment thresholds, aiming to balance consumer health protection requirements with trade facilitation.

The US wishes to coordinate with Vietnamese specialized agencies to discuss and review technical requirements, avoiding unnecessary disruptions in the flow of goods, said Mr. Vaden, stressing that ensuring that Vietnamese and US consumers have access to safe food, while management regulations do not become unnecessary barriers to trade.


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