• Compared to stocks, bonds are considered a lower-risk investment, making them a good choice for investors with a low-risk appetite. In case a company terminates operations and liquidates their assets, bondholders will be paid before its preferred and common shareholders.
• Bond yields are not dependent on the company’s business performance. Even if it suffers from loss, it is still obligated to pay the interest in full on the due date.

This depends on your risk appetite. Government bonds are deemed safer as they are issued by government agencies. However, their coupon rates are typically lower than those of corporate bonds.

Although bonds are considered a relatively safe investment option, they still, in theory, carry certain risks. In addition to risks arising from interest rates, inflation, and liquidity, investors may also face capital safety risks if the issuer encounters difficulties in meeting debt obligations.

The face value of Government bonds is one hundred thousand (100,000) VND or a multiplier of one hundred thousand (100,000) VND.

- Government bonds have regular maturities of 3 years, 5 years, 7 years, 10 years, 15 years, 20 years, 30 years and 50 years.

- Other bond maturities are determined by the Minister of Finance.

In Vietnam, Government bonds are typically issued for medium-term and long-term maturities. The most common medium-term maturities are 5 years, 7 years, and 10 years. For long-term bonds, maturities of 15 years, 20 years, and 30 years are popular.

In addition to coupons, you should carefully choose reliable bond issuers with transparent history, stable and sustainable business performance and good prospects to make sure that they are able to fulfill their repayment obligations.

You are exposed to the following risks in investing in corporate bonds.

- Corporate bonds are not unconditionally guaranteed. If the issuer is unable to meet its debt obligations, bondholders may lose both principal and interest.

- Bonds generally offer lower yields than stocks. This means investors may miss out on the potential for higher returns from other equity investments.

- If inflation rises significantly, the real value of bond interest will be likely to decrease, resulting in reduced purchasing power for investors.

- The value of bonds may fall when market interest rates rise, making bonds less attractive than other investment options.

- Bonds have a fixed maturity date. Holding bonds until maturity can reduce liquidity, thus restricting investors’ access to funds when needed. Additionally, the bond's value may gradually decrease as it approaches the maturity date.

- It often takes a quite large fund to invest in bonds.