The Phenomenon of Bond Interest Rates: Banks Face High Rates, VinGroup, Vinhomes, Vietjet… Raise Capital at Lower Rates of 9-11%/Year, Stock Sector Even Lower

The S&I Ratings report on the bond market for Q3 2025 indicates that real estate and manufacturing companies are raising capital at lower interest rates, while banks are facing rising rates. Specifically, funding costs for real estate decreased by 50-150 basis points, with VinGroup and Vinhomes lowering to 11%/year. Companies like Vietjet and SBT issued bonds at rates of 9.722% and 9.5%/year, respectively.

S&I notes improvements in the business environment and positive economic data, such as GDP growth of 8.23% helping to bolster investor confidence. Conversely, average bond issuance rates for banks have risen to 6.18%, the highest in six quarters, due to increased capital demands. Despite lower rates, the pressure for bond maturities in the real estate sector remains significant, with approximately 18,331 billion VND maturing in the last three months of the year. Notably, Decree 245/2025/ND-CP requires credit rating for bond issuers, potentially impacting the primary bond market in the coming months.