Page 397 - Ebook HTKH 2024

the market witnessed many incidents that caused a decline in confidence, causing
consecutive consequences. The Government began to tighten corporate bond issuance

activities, especially at the end of the year. As a result, the amount of corporate bonds
issued in the year decreased by 64% compared to the peak year of 2021. Entering 2023,
corporate bonds were generally relatively quiet in the first half of the year and improved
in the second half. In 2023, the total value of corporate bonds issued reached VND 311.2
trillion, an increase of more than 15% over the previous year (VBMA, 2024).
In 2022, the total value of corporate bonds issued in the past year reached VND
258,575 billion, approximately 12.6% of GDP, still relatively modest compared to
countries in the region such as Malaysia (56% of GDP), Singapore (38% of GDP),

Thailand (25.5% of GDP). Corporate bond outstanding debt accounted for 10% of the
total outstanding debt of the whole economy at the end of 2022. In 2023, the total value
of corporate bond issuance was recorded at VND 324,234 billion, with 29 public
issuances worth VND 37,070 billion and 306 private issuances worth VND 287,164
billion (accounting for 88.6% of the total). (VBMA, 2024).
2.2. On the term structure and interest rates of corporate bonds

In addition to the structure of issuance forms, the issuance data also shows a
precise classification of the term structure. The term structure of corporate bonds is
mainly concentrated in 3 - 5 years and over five years. These two terms account for a
reasonably large proportion, showing the demand of issuing organizations for medium-
term debt instruments (HNX, 2024).
The average issuance term of corporate bonds in 2023 is 5.96 years, down about
0.4 years compared to the average in 2022. The issuance terms of credit institutions and

real estate enterprises are 5.51 and 4.01 years, respectively (HNX, 2024).
It can be seen that 67% of corporate bonds issued in the fourth quarter have a term
of 5 years or less. Average issuance interest rate in Q4/2023: 7.65%/year. Average
issuance term in Q4/2023: 5.56 years. The issuance interest rate continued to decrease
in the fourth quarter with an average value of 7.65%/year, this is the fourth consecutive
quarter of decrease in 2023. The issuance interest rate of the banking group is mostly

from 5 - 7%/year, only a few commercial banks have an interest rate of about 8%. The
real estate group has a common interest rate of 9.7% - 12.5%/year (HNX, 2024).
2.3. Regarding issuance method
Enterprises mainly issue by issuing agencies through securities companies or
commercial banks. In 2021, issuance by the agency method accounted for 66% of the
total issuance volume; credit institutions mainly issued bonds directly to investors.
11.71% of the volume of privately issued bonds was underwritten by securities
companies. Accordingly, securities companies provide consulting services on

documents, underwriting, and distributing bonds on the secondary market (HNX, 2024).
In terms of investors and members participating in the issuance market, the
following table shows the structure of domestic and foreign investors participating in

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