Vietnam’s property market has turned to the bond market in a dramatic way. In the first nine months of 2026, developers issued almost VND149.5 trillion in bonds, a rise that signals a major shift in how they fund projects.

Vietnam’s real estate firms issued nearly VND149.5 trillion ($5.7 billion) in corporate bonds in the first nine months of 2026, a 126 % year‑on‑year increase, with many bonds offering 11 % to 12.5 % interest per year. The surge shows how quickly developers are relying on the bond market for cash.

According to data from credit rating agency VIS Rating and Nguyen Duy Quang, an economic and public policy expert at the Ho Chi Minh City University of Economics and Finance, developers turned to bond financing because traditional sources of capital became more constrained and they faced refinancing pressures. The high rates reflect the cost of obtaining liquidity under tighter financing conditions.

Credit growth in the real estate sector fell to 8.6 % in the first half of 2026, far below the 15 % recorded a year earlier, indicating tighter regulatory controls. Meanwhile, capital raised through new share issues plunged 86 % to VND350 billion ($13.3 million) in the first six months, showing that equity financing has also dried up.

Property companies now need to refinance about VND167 trillion ($6.4 billion) in bonds that will mature from the fourth quarter of 2026 through the end of 2027. Issuing high‑interest bonds helps them keep liquidity and continue construction despite the financing squeeze.

The surge in costly bond issuance reveals that Vietnamese developers are coping with a tightening credit environment and large upcoming debt repayments. This financing pressure may keep housing costs high and increase investment risk in the sector.