Page 399 - Ebook HTKH 2024

trading of individual corporate bonds in the domestic market and the offering of
corporate bonds in the international market (MOF (2024).

Thirdly, the tenor of bonds is increasingly diverse and the interest rate on
corporate bond issuance tends to decrease
In the context of the State Bank still managing credit growth limits, corporate
bonds have emerged as a new capital mobilization channel, helping businesses not only
mobilize capital in the medium and long term but also restructure their debt sources,
limiting their dependence on the commercial banking system. Not only is it a new capital
mobilization channel for businesses, but the corporate bond market is also a new choice
for investors. During the difficult economic market period, the stock market has

continuously decreased in points and is on the list of weak markets compared to other
countries in the world.
Fourthly, the structure of investors buying corporate bonds is also increasingly
diverse.
Domestic investors still dominate; the proportion of foreign investors shows signs
of increasing but is still insignificant compared to domestic investors. Considering the

domestic investor group alone, the domestic banking group accounts for the highest
proportion. Regarding the investor structure, securities companies and commercial
banks are the main investors in the primary market, and the proportion of individual
corporate bond purchases by individual investors has decreased compared to 2020.
Fifthly, the possibility of successful maturity and the implementation of the
individual corporate bond system is increasingly feasible.
The pressure on corporate bond maturity is still increasing at the end of 2024, while

many issuers are still facing difficulties in business operations and cash flow, being able
to negotiate to extend the maturity of bonds that are about to mature is one of the best
solutions that these issuers can choose at present to have more time to recover production
and business and create enough cash flow to pay for their bond debts.
3.2. Limitations
Firstly, the scale of private issuance of corporate bonds has grown rapidly and

rapidly in recent years. However, the size of the Vietnamese bond market only accounts
for about 15% of GDP, much lower than other countries in the region. The uneven
growth in issuance volume and quality of bonds leads to the market being easily affected
by any changes in legal policies or the market.
Secondly, the structure of investors from private issuance of corporate bonds has
not been diversified when the results show that they are mainly concentrated in two
groups: securities companies and domestic commercial banks. Banks are the largest
issuers of bonds and also the largest buyers of bonds, leading to the consequence of a

lack of transparency in capital flows and the risks that follow.
Thirdly, the short-term and medium-term bond maturity structure - high interest
rates but the purpose of raising capital for long-term projects leads to future financial

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