The Vietnamese real estate market is currently facing a period of seismic shifts, driven by a wave of corporate bond issuances, mounting debt maturities, and a flurry of debt-to-equity swaps as companies scramble to shore up their financial positions. The scale and pace of these developments, as reported by multiple financial sources including the Vietnam Bond Market Association (VBMA) and detailed in recent analyses by leading Vietnamese business publications, paint a vivid picture of both opportunity and risk in the sector.
On August 13, 2025, CTCP Đầu tư Phát triển Bất động sản Thành Vinh, a relatively new but increasingly prominent player in the real estate scene, issued 6,000 bonds worth a total of 600 billion VND. These bonds, carrying a six-year term and a 9.2% annual interest rate, are set to mature in August 2031. This move was not an isolated event; rather, it was the latest in a rapid sequence of bond issuances by Thành Vinh over just four weeks. From July 17 to early August 2025, the company completed four separate rounds, raising a cumulative 2,000 billion VND—an amount that is 2.2 times its charter capital of 905 billion VND.
The bond issuance dates were July 17 (500 billion VND), July 23 (600 billion VND), August 1 (300 billion VND), and the most recent on August 13. Each batch shares the same long-term structure and interest rate, suggesting a coordinated effort to leverage the bond market for expansion or to address looming financial obligations. Just one day before the latest bond sale, Thành Vinh made headlines by acquiring over 6.5 million shares of CTCP Chứng khoán Stanley Brothers (VUA), instantly becoming a major shareholder with more than 19.3% ownership. This aggressive approach to both bond financing and equity investment signals a company intent on scaling up quickly, but it also raises questions about sustainability and risk.
Thành Vinh, established in 2018 and headquartered in Nghệ An province, primarily develops residential land, townhouses, and villas targeting middle-income buyers. Yet, as industry observers have noted, its brand remains relatively modest in both local and national real estate markets. The company’s limited land reserves, unstable cash flows, and fluctuating profits have been flagged as critical vulnerabilities. According to a 2025 credit rating assessment, "Thành Vinh is implementing strong financial leverage policies while cash flow and business profits have not stabilized, which may reduce the company’s ability to meet debt obligations in the medium and long term." This assessment underscores the tightrope that many real estate firms are now walking as they seek to balance growth ambitions with the realities of a challenging market.
Zooming out, the broader Vietnamese real estate sector is grappling with a tidal wave of debt maturities. The VBMA estimates that bonds worth 131,601 billion VND will mature in the second half of 2025, with real estate bonds accounting for a staggering 69,970 billion VND—53% of the total. This mounting pressure is forcing companies to get creative with their financial strategies, and debt-to-equity swaps have emerged as a key tool in the restructuring arsenal.
Several high-profile companies are now turning to this approach. Hoàng Anh Gia Lai (HAGL), for example, plans to issue 210 million shares at 12,000 VND per share to convert debt. Creditors include one institution and five individuals, notably CTCP Tư vấn đầu tư Hướng Việt, which holds nearly 721 billion VND. The debt in question stems from HAGL’s earlier bond dealings with BIDV, involving principal bonds of 2,000 billion VND and accrued interest exceeding 2,022 billion VND. After the swap, Hướng Việt is expected to hold 4.74% of HAGL’s capital, with other creditors also gaining equity stakes.
Similarly, CTCP Tư vấn thương mại dịch vụ địa ốc Hoàng Quân (HQC) is set to issue 50 million shares at 10,000 VND each, totaling 500 billion VND, to convert outstanding debts. Part of this includes a 212 billion VND debt to CTCP Đầu tư Hải Phát (HPX), which will be swapped for 21.2 million shares—3.38% of HQC’s post-issuance capital.
Novaland (NVL), another major player, has approved the issuance of over 168 million shares to convert more than 2,645 billion VND in debts owed to NovaGroup, Diamond Properties, and Mrs. Hoàng Thu Châu. Novaland is also planning to issue nearly 152 million shares at 40,000 VND each to convert the entire principal debt of 13 bond codes issued between 2021 and 2022, with a total value of 6,074 billion VND. The company aims to complete this process by 2026, pending regulatory approval.
These moves, while providing immediate relief from crushing debt burdens and improving cash flow, are not without their drawbacks. As Mr. Hoàng Kim Hoài, General Director of Phúc Điền Land, observes, "This is a solution that balances the interests of both bondholders and the company. When the real estate market remains gloomy, many businesses struggle to generate enough cash flow to pay due bonds. Converting bonds to shares helps avoid the risk of insolvency and opens up space to reallocate resources and focus on critical projects." However, he also cautions, "Issuing more shares means diluting the interests of existing shareholders in the short term, but in the long run, it is necessary for companies to reduce cash flow pressure, improve financial safety ratios, and sustain stable operations."
Yet, even as companies act to restructure their debts, the overall market picture remains fraught. August 2025 alone will see 17,500 billion VND in real estate bonds come due—almost double the amount in July and the highest monthly figure so far this year. VIS Rating reports that 1,200 billion VND in bonds are considered high risk, with payment delays already recorded from the first repayment period.
Experts stress that while debt-to-equity swaps are a valuable restructuring tool, they are no magic bullet. Persistent cash flow problems, legal bottlenecks, and weak demand continue to plague the sector. According to VIS Ratings, even as debt ratios among the 30 largest listed real estate firms have edged down due to improved profits in the first quarter, cash generated from business activities remains negative—a critical weakness in the sector’s credit profile.
Meanwhile, the market’s structural challenges are becoming increasingly pronounced. As reported by the Ministry of Construction, national apartment inventory rose by more than 40% at the end of Q2 2025, concentrated mainly in the high-end segment. Prices have outpaced the purchasing power of even upper-middle-income buyers, with old apartment prices in Hanoi up 120–180% year-on-year. Phạm Thị Miền, Deputy Director of the Vietnam Real Estate Market Research Institute, notes, "Even those earning 40–50 million VND per month find it hard to buy a home without family support."
In this environment, companies like Thành Vinh are emblematic of both the promise and the peril facing Vietnam’s real estate sector. Their bold financial maneuvers offer a potential path forward, but only time will tell whether these strategies will deliver stability or simply postpone a day of reckoning. As the sector stands at this crossroads, the coming months will be a critical test of its resilience and adaptability.
