Phenomenon of Bond Interest Rates

The Q3/2025 bond market report from S&I Ratings reveals a notable trend in bond interest rates. While banks are facing high funding costs, numerous real estate and production companies are securing capital at significantly lower costs. Specifically, funding costs in real estate have decreased by 50-150 basis points, with examples such as VinGroup and Vinhomes dropping from 12.5% to 11% per year. Not only real estate, but also non-bank financial entities like TCBS see lower interest rates. S&I Ratings attributes this trend to improved business conditions and new regulatory frameworks that have bolstered investor confidence. However, the pressure of bond maturities in the real estate sector remains high, with 18.331 trillion VND maturing in the last three months of 2025. Additionally, Decree 245/2025/ND-CP mandates issuers to obtain credit ratings, which is expected to enhance market transparency.