A positive sign is the recent trend of companies buying back bonds ahead of maturity. (Photo: thanglong.chinhphu.vn)

Vietnamese non-banking institutions are facing increasing pressure to repay corporate bonds, with principal payments expected to peak in the third quarter of 2025.

According to data from FiinTrade, the total value of corporate bond principal due for repayment by non-banking entities in May is estimated at 11.4 trillion VND (438.8 million USD), double the 5.3 trillion VND due in April.

The real estate sector accounts for a significant portion of these obligations, with about 3.5 trillion VND in corporate bonds maturing in May, representing 31% of the total value and a 20.3% increase compared to April's estimates.

The retail sector is expected to have 3 trillion VND of corporate bond principal due in May.

Overall, the total principal of corporate bonds due in the second quarter of 2025 for the non-banking sector is estimated at 24.4 trillion VND, up 26.6% from the first quarter.

A positive sign is the recent trend of companies buying back bonds ahead of maturity.

This has reduced the estimated value of corporate bonds maturing in 2025 for the non-banking sector to 159.8 trillion VND, down from the initial estimate of 171.9 trillion VND at the beginning of the year.

Regarding interest payments, the value for May is expected to increase by 48% compared to April.

Specifically, the cash flow for bond interest payments in May is estimated at about 5 trillion VND, higher than the average of 4.3 trillion VND per month in the first four months of the year.

The real estate sector continues to account for a high proportion of total interest payments, at 39% of the total market value in May.

The construction and materials, utilities and tourism and entertainment sectors also recorded significant interest payments, although still much lower than real estate.

In the second quarter of 2025, the total value of corporate bond interest payments due for the non-banking sector is estimated at 16.2 trillion VND, an increase of 13.5 trillion VND compared to the first quarter and concentrated in June (7.3 trillion VND).

Interest payment pressure is expected to be even higher in the third quarter of 2025, at approximately 17.9 trillion VND, mainly in the real estate, tourism and entertainment, financial services and construction and materials sectors.

Several organisations face challenges regarding upcoming bond maturities. Quang Thuan Real Estate Investment JSC, for example, has a substantial amount of bonds maturing in August and has previously been unable to meet its principal and interest obligations.

Similarly, Hoang Phu Vuong Corporation, with a significant bond maturity in July, has not disclosed recent business performance data, while Sun Valley Investment Corporation also has considerable bond maturities this year but has not provided required information.

Other companies, including Trung Nam Land Real Estate, Thien Phuc International Hotel JSC, Saigon Glory and Phu Quoc Tourism Development and Investment JSC, have faced past difficulties, such as violating interest payment obligations or undergoing debt restructuring.

With increasing maturity pressure, negotiations between issuers and bondholders to extend bond terms continue to take place.

As of April 15, a number of issuers had reached agreements with bondholders to extend bond terms and had officially reported to the Hanoi Stock Exchange (HNX).

The total value of bonds with extended terms is significant, with a portion of bonds maturing in 2025 having their terms extended. The real estate sector accounts for a large share of these extensions./.