Vietnam upgrades corporate bond market standards to eventually unlock idle domestic capital

Effective 11 September 2025, all corporate bonds offered to the public in Vietnam must obtain a credit rating — except for those fully guaranteed by qualified credit institutions or issued directly by credit institutions themselves. This marks a new era of transparency and investor protection in Vietnam’s capital market.

After the overheating period in 2021–2022, Vietnam’s corporate bond market contracted from 18% of GDP to around 11% following the Vạn Thịnh Phát case, which eroded investor confidence. The new regulation aims to restore trust, encourage disciplined issuance, and align the market more closely with international best practices.

Currently, Vietnam’s five licensed domestic credit rating agencies have rated only 89 issuers, showing both the nascency of the sector and its vast potential.

At the same time, many Vietnamese households are keeping savings in gold and USD at home, meaning a large pool of idle capital is not circulating in the economy. This policy is part of the government’s broader effort to mobilize domestic capital, offering safer and more transparent investment alternatives while easing pressure on the banking system.

A stronger, more transparent bond market will be key to channeling savings into productive investment and supporting Vietnam’s next phase of sustainable growth.