Corporate Bond Market Review - March 2024

In March 2024, Vietnam’s corporate bond market showed positive developments from improving credit conditions, such as a decline in new defaults, an increase in debt restructuring, and an increase in new issuances. The recovery rate increased marginally to 13% at the end of March 2024 due to some repayments by defaulted issuers; for example, Hung Thinh Investment repaid its VND 2 trillion bond principal in full. Among the bonds maturing in April 2024, we estimate the value of bonds-at-risk will be at a low level compared to the average monthly value of bond defaults in 2023. New issuance in March 2024 reached VND 8.8 trillion, around 3 times higher than in the previous month.