An individual investor is opening an account at a securities company. (Photo: SGGP)

Corporate bond market develops rapidly

Amid the context that banks limit medium and long-term loans, many enterprises have shifted to a new capital mobilization channel – corporate bond issuance. Statistics by the Ministry of Finance showed that in the first four months of this year, the corporate bond market developed rapidly, exceeding VND58 trillion.
Real estate companies lured more than 50 percent of the total amount of money mobilized in the bond market. (Photo: SGGP)

Enterprises race to mobilize capital from corporate bonds

While stocks of many enterprises and even banks have dropped to below face values, the bond market has warmed up as enterprises raced to mobilize capital through bond issuance, especially small enterprises.
Real estate bonds account for more than half in bond market

Real estate bonds account for more than half in bond market

In January alone, the total corporate bond issuance exceeded VND13.37 trillion, of which real estate enterprises issued more than VND7.36 trillion, accounting for 55 percent of the total issuance in the market.
A luxury residential project in District 2 in Ho Chi Minh City. (Photo: SGGP)

Credit for real estate sector continues to be adjusted

The State Bank of Vietnam (SBV) continues to stick with the plan of reducing the proportion of short-term capital used for medium and long-term loans this year, which is considered to be a barrier to the credit of real estate. However, according to the leader of the central bank, this does not mean that it will close the doors and not give loans to this sector but it will only provide capital for effective real estate projects.
Risks contained in investment in corporate bonds

Risks contained in investment in corporate bonds

In the first eight months of this year, it is estimated that the total amount of corporate bonds being offered was more than VND129 trillion and successful issuance rate was 90.8 percent, or nearly VND118 trillion. Of which, banks issued more than VND56 trillion worth of bonds, accounting for nearly half of total value of issued bonds in the market.
Real estate firms strongly issue corporate bonds

Real estate firms strongly issue corporate bonds

Real estate firms issued corporate bonds heavily  in the first half of this year, accounting for 27 percent of total number of issued corporate bonds amid the scheme to limit credit into real estate sector of the Government and the State Bank of Vietnam.
Real estate companies issue bonds to mobilize capital. (Photo: SGGP)

Real estate companies issue bonds massively

Reports by securities companies showed that more than VND60 trillion worth of corporate bonds has been issued since the beginning of this year, of which, real estate and construction field was the runner-up in the amount of issued corporate bonds with VND16.23 trillion, accounting for 27 percent.
A real estate project carried out by Vietnamese firms in association with its Japanese partner in Binh Chanh District in Ho Chi Minh City. (Photo: SGGP)

Real estate firms seek for sources of capital

As credit for real estate market has continued to be tightened, real estate companies have had to use other mobilization channels, including issuing bonds and looking for foreign investors so as to reduce dependence on banks.