According to latest report from MB Securities (MBS) released on June 17, Vietnam’s corporate bond market continued to show positive signs in the first half of 2026, supported by a sharp increase in early bond redemptions, significantly lower maturity pressure in the third quarter (Q3), and a low ratio of overdue bonds relative to the overall market size.

MBS estimates that around $1.24 billion in corporate bonds will mature in Q3/2026, representing a 47 per cent decline from the same period last year.

Of the total, the real estate sector is expected to account for the largest share at approximately $756 million, equivalent to 61 per cent of all maturing bonds.

Regarding payment delays, two bond issues failed to meet principal and interest obligations in May, with a combined value of nearly $8.5 million.

As of the end of May, the total value of bonds with overdue payment obligations was estimated at $1.26 billion, equivalent to 2.3 per cent of the outstanding corporate bond balance across the market.

Meanwhile, early bond redemptions remained robust. In May alone, the value of corporate bonds repurchased before maturity reached approximately $1.6 billion, up 82.5 per cent on-year.

Banks accounted for 93.7 per cent of total early redemptions, with a value of around $1.49 billion, 3.5 times higher than a year earlier.

The real estate sector recorded early redemptions of approximately $96 million, down 77.4 per cent on-year and representing 6.2 per cent of the month's total redemption value.

In the first five months of 2026, total early bond buybacks reached approximately $3.26 billion, up 32.8 per cent compared to one year ago. The banking sector was the key driver, accounting for 80.6 per cent of total market-wide redemptions and posting a 211 per cent on-year increase.

On the primary market, issuance activity in May was broadly flat compared with the previous month. Total corporate bond issuance amounted to $2.12 billion, down 23.6 per cent from the same period of 2025.

Notably, the banking sector regained its position as the market’s leading issuer, with issuance value reaching $1.3 billion, up 70 per cent from April but down 32.3 per cent on-year.

The largest issuers during the month were Military Commercial Joint Stock Bank (MBBank), which issued $360 million worth of bonds with tenors ranging from 36 to 120 months and coupon rates of 8.2–8.3 per cent per year; Vietnam Technological and Commercial Joint Stock Bank (Techcombank), which issued $320 million with maturities of 24–36 months and a coupon rate of 8.4 per cent per year; and Orient Commercial Joint Stock Bank (OCB), which issued $120 million with tenors of 24–36 months and coupon rates of 8.5–8.6 per cent, per year.

In contrast, issuance by real estate developers fell sharply by 49.4 per cent from the previous month to $616 million, although the figure was still 23 per cent higher than a year earlier.

The sector’s weighted average coupon rate rose to 12.5 per cent, up 3.2 percentage points from April.

According to MBS, the increase was largely attributable to the impact of Vingroup Group’s international bond issuance in April, which carried a coupon rate of 5.5 per cent and accounted for roughly 30 per cent of the sector’s total issuance value, thereby lowering the average rate.

In May, however, large-scale bond issues were priced at around 12.5 per cent per year, pushing average yields higher once again.

As a result, the market-wide average coupon rate increased to 9.7 per cent in May, up 0.7 percentage points from the previous month. In terms of issuance method, private placements continued to dominate, accounting for approximately $2 billion, or 95 per cent of total domestic issuance.

From the beginning of the year through the end of May, total corporate bond issuance reached nearly $5.9 billion, up 3 per cent on-year. The weighted average coupon rate was estimated at 9 per cent, significantly higher than the 7.3 per cent recorded in 2025.

By sector, real estate remained the largest issuer, with total issuance reaching $2.79 billion, up 159.4 per cent from the same period last year and accounting for 47.4 per cent of the market’s total issuance volume. The sector’s average coupon rate stood at 9.5 per cent per year, with an average tenor of approximately four years.

The banking sector ranked second, with total issuance amounting to $2.54 billion, representing 43.2 per cent of the market.

The sector’s average coupon rate was 8.3 per cent per year, while the average tenor was 4.8 years. The largest bank issuers so far this year were Techcombank with $640 million, MBBank with $432 million, and OCB with $236 million.