The challenge of bank lending as the dominant funding channel, expected to become more pronounced in the coming years, was tackled by experts at the Vietnam Corporate Bond Market Forum on April 2 in Hanoi.

Total development investment could approach 40 per cent of GDP, the event heard, leaving an estimated annual gap of $20-30 billion in medium- and long-term capital that bank lending alone is unlikely to fill. In that context, the corporate bond market is increasingly seen as a necessary complement rather than an alternative, and its development is also supported by a favourable macroeconomic backdrop.

Kim Eng Tan, managing director for Asian Sovereign Ratings at S&P Global Ratings, said Vietnam continues to stand out as one of the region’s more attractive investment destinations, underpinned by a stable business environment and ongoing infrastructure development.

“Following GDP growth of 8.05 per cent in 2025, the country is forecast to sustain an average annual expansion of around 6.7 per cent between 2026 and 2028,” said Kim. “However, maintaining this trajectory will require substantial long-term capital, particularly for infrastructure, alongside careful management of fiscal pressures and external balances.”

Despite its growing importance, the corporate bond market is still evolving. While it has recovered from the disruptions of 2022, several constraints continue to affect its depth and efficiency.

Pricing remains one of the more complex issues, particularly in a market where interest rates can fluctuate significantly across issuance periods.

“The key challenge is how to determine an appropriate risk premium and structure terms that adequately protect investors after issuance,” said Ba Thi Thu Hue, head of Commercial at FiinRatings. “A gradual alignment with international practices would help establish more consistent pricing mechanisms.”

Transparency is another persistent concern, particularly beyond the issuance stage. “Prospectuses often meet regulatory requirements but fall short of what investors need to make informed decisions. Limited disclosure can directly affect investor confidence,” she added.

Luong Thuy Ngan, director of Investment Banking at Vietcombank Securities, said that disclosure often weakens after transactions are completed. “Companies may become more cautious in sharing information after issuance, especially when it involves future projects or commercially sensitive contracts,” she said. “This creates an information gap for secondary market investors without direct access to issuers.”

In a market where liquidity remains relatively shallow, such gaps can increase perceived risks. “When transparency is limited, investors either step back or demand higher yields to compensate,” Ngan added.

These challenges are prompting gradual regulatory adjustments to strengthen market discipline while supporting recovery. Issuers are now required to enhance post-issuance reporting, including tracking bond proceeds, publishing audited financial statements, and providing more regular disclosures. Credit ratings will also become mandatory for certain bond categories from 2026, improving risk monitoring and pricing transparency.

From an investor standpoint, market depth remains a key issue. Trinh Thi Quynh Giao, CEO of PVI Asset Management, said that while private placements continue to account for the majority of issuance, improving liquidity and ongoing credit assessment will be critical for long-term development.

“Credit evaluation cannot stop at issuance, as a company’s financial position can change significantly over a bond’s lifetime, typically with tenors of 3-5 years,” she said. “Liquidity constraints also persist despite improvements in trading infrastructure. The ability to exit investments remains limited, and the role of market makers has yet to be fully developed.”

At the same time, efforts are being made to diversify products and funding channels in response to evolving financing needs. Green bonds, in particular, are gaining traction as part of the broader transition towards sustainable finance.

Hoang Thi Hang, deputy CEO of Binh Thuan Plastics, said her company’s issuance was aimed at securing long-term capital while attracting a more specialised investor base. “We were able to attract high-quality investors, particularly those with strict environmental, social, and governance requirements, who are willing to take a long-term view,” she said.