ADB: Growth in corporate bonds in VN reaches 76% by end of June

ADB: Growth in corporate bonds in VN reaches 76% by end of June

VGP – Growth in corporate bonds in Viet Nam stood at 76% at the end of June this year, according to the latest issue of the Asian Development Bank’s (ADB) Asia Bond Monitor on September 25.

VGP – Growth in corporate bonds in Viet Nam stood at 76% at the end of June this year, according to the latest issue of the Asian Development Bank’s (ADB) Asia Bond Monitor on September 25.

According to the ADB, Viet Nam’s local currency bond market contracted by 1.7% at the end of June this year to reach US$58.2 billion, after posting healthy 10.4% quarterly growth in the first quarter.

This is mainly due to lower outstanding debt in the government sector, even as the corporate bond stock increased.

 Viet Nam’s government bond segment contracted 7.8% quarter-on-quarter at the end of June 2020 to reach US$50.1 billion, accounting for 86.2% of the country’s total bond stock. Corporate bonds, however, surged by 65.6% quarter-on-quarter in the second quarter to reach US$8 billion.

“Governments in the region have been agile in dealing with the impact of the COVID-19 pandemic through a wide range of policy responses, including monetary easing and fiscal stimulus,” said ADB Chief Economist Yasuyuki Sawada.

 “It is crucial that governments and central banks maintain accommodative monetary policy stances and ensure sufficient liquidity to support financial stability and economic recovery”, he added.

Emerging East Asia consists of China, Hong Kong (China), Indonesia, the Republic of Korea, Malaysia, the Philippines, Singapore, Thailand and Viet Nam.

The region’s government bonds outstanding reached US$10.5 trillion at the end of June and accounted for 60.8% of the region’s aggregate bond stock. Corporate bonds, meanwhile, totaled US$6.7 trillion.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

By Thuy Dung

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