The Housing Development Bank (HDB) said it planned to issue VND3 trillion ($157.89 million) of long-term commercial papers, while An Binh Bank (ABBank), Lien Viet Bank and Techcombank said they would issue VND2-3 trillion ($105.26-157.89 million) worth of convertible bonds this year.

"Banks are eager to issue bonds because they are facing difficulties mobilising long-term capital," the general director of an HCM City-based bank, who asked to remain anonymous, said.

To reduce risks and maximise easy gains, banks and enterprises are joining forces when it comes to corporate bonds. Among the banks and corporations forming alliances are the Vietnam International Bank (VIB Bank) and Vinaconex Sai Gon JSC; the Bank for Investment and Development of Vietnam (BIDV) and Vinaconex-Viettel Finance and Vietnam Construction Import and Export; and Techcombank and Electricity of Vietnam.

The average coupon value is about 14-14.8% per year for the first year. The common deposit interest rate is now hovering at about 11.5% per year. Deposit interest rates have fallen to 10% – making holding bonds more profitable in the long term than keeping money in banks.

Do Ngoc Quynh, general secretary of the Vietnam Bond Market Association, predicted that growing mid- and long-term demand among enterprise would drive corporate bond issuances over the next few years.

Some market watchers say that the rebound of the corporate bond market is being supported by encouraging signs by the Government in recent months.