Vietnam Corporate Bond Yields Near Peak: Banks at 8.85%, Real Estate 12.5-13%

Overview

Corporate bond issuance yields in Vietnam rose about 2.5 percentage points from the 2025 trough to nearly 9.5% per annum in the third quarter, according to S&I Ratings, approaching the 2022-2023 peak. Banks averaged 8.85% and real estate issuers 12.5-13%, raising funding costs for listed lenders such as Sacombank (STB, HOSE) and property developers including Vinhomes (VHM, HOSE), Đất Xanh Group (DXG, HOSE) and Khang Điền House (KDH, HOSE).

Key Facts

• Q3 corporate bond issuance yields rose 2.5 percentage points from the 2025 trough to nearly 9.5% per annum, per S&I Ratings.
• Banking sector issuance averaged 8.85% per annum in Q3, exceeding the 8.7% average of 2022.
• Sacombank (STB) issued bonds with a fixed coupon of 10% per annum; PVcomBank priced at 12-month deposit rate plus 4.6%, equivalent to about 10.4%.
• Real estate and other sectors averaged 12.5-13% per annum, below the 14-14.5% peak of 2022-2023.
• Vinhomes, Thái Sơn Construction Investment, Cần Giờ Tourism Urban and Green City Development issued above 12.5%; Khải Hoàn Land and Tandoland paid over 13%.
• Total new corporate bond issuance reached VND 464.1 trillion in the first nine months of 2026.
• Outstanding corporate bond value rose 7.1% from end-2025 to VND 1.54 quadrillion, versus credit growth of 11.59% over the same period.

What Happened

S&I Ratings, a credit rating agency, reported that new corporate bond issuance costs rose across all sectors in Q3. For banks, the average issuance rate reached about 8.85% per annum, officially surpassing the 8.7% average of 2022. Several banks paid bondholders more than 10% per annum in Q3, compared with a peak of 9.7% in 2022-2023. Sacombank issued bonds at a fixed 10% coupon, while PVcomBank applied the 12-month individual savings rate plus a 4.6% margin, equivalent to about 10.4%.

Fiin Ratings, another credit rating agency, attributed the rise to banks raising term deposit and bond rates to attract capital as credit growth outpaced deposit mobilization. It forecast funding costs would stay flat rather than decline in Q4, favoring institutions with high credit quality, while weaker institutions would likely delay or scale back issuance. In real estate, many large developers issued bonds above 12.5% per annum, including Vinhomes, Thái Sơn Construction Investment, Cần Giờ Tourism Urban and Green City Development, while Khải Hoàn Land and Tandoland paid over 13%. Fiin Ratings said the elevated cost environment would keep firms cautious and delay issuance plans, though corporate bonds remain a supplementary channel to bank credit, which is capped at 15% system-wide credit growth.

Market Context

STB (HOSE) closed at VND 62,300 on 20 October 2026, with the bank’s 10% bond coupon underscoring the cost pressure from rising deposit and bond rates. VHM (HOSE) closed at VND 57,800, DXG at VND 10,250 and KDH at VND 14,150, as real estate issuers face 12.5-13% funding costs. The broader Vietnamese corporate bond market is expanding at 7.1% year-to-date, slower than 11.59% credit growth, reflecting cautious issuance amid higher yields and stricter compliance under Decree 200, effective 5 June 2026.

Strategic Significance

For long-term investors, the rise in bond yields signals a higher cost of capital for banks and property developers, compressing net interest margins at lenders like STB and squeezing margins at developers such as VHM, DXG and KDH. The divergence between strong and weak issuers is likely to widen, with higher-rated banks and developers retaining access to funding while weaker firms delay issuance. The slower expansion of the bond market relative to credit growth suggests corporates remain reliant on bank loans, but the 15% credit cap for real estate limits that channel, making bonds a structural supplement. Decree 200’s stricter compliance requirements may further raise barriers for smaller issuers, reinforcing the advantage of larger, higher-quality borrowers.

What to Watch

• Q4 2026 corporate bond issuance data from S&I Ratings and Fiin Ratings, due in January 2027.
• Sacombank (STB) Q3 2026 earnings release and net interest margin guidance.
• State Bank of Vietnam policy meeting minutes on credit growth and deposit rates.
• New bond issuance announcements from Vinhomes (VHM), Đất Xanh (DXG) and Khang Điền (KDH).
• Compliance updates under Decree 200 effective 5 June 2026 and any amendments.