Vietnamese bond market rapidly develops

14:33 | 08/06/2014 Economy

(VEN) - The Asian Development Bank (ADB) announced its Asia Bond Monitor on June 4 saying that the Vietnamese bond market grew the fastest among emerging economies in East Asia.

The ADB said that local and offshore demand for emerging East Asia’s local currency bonds of emerging economies in East Asia (defined as China, Hong Kong-China, Indonesia, the Republic of Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam) is rising again and should continue given strong economic growth prospects in the region. Most emerging East Asia bond markets have regained their bounce. Thailand’s bonds though could buck the trend given recent political upheavals and investors there are likely to be cautious for some time.

Bond yields which fall as demand increases declined in most economies in the first four months of the year, dropping most in Indonesia, Thailand and Vietnam. Despite that, the markets also continue to grow in size with US$7.6 trillion in bonds outstanding in the nine economies at the end of March, up 2.1 percent from the last quarter of 2013 and 9.5 percent higher than a year earlier.

A large amount of governmental bonds issued in Vietnam made the bond market to grow the fastest among emerging East Asia economies in the first quarter of this year, growing by 23 percent from the last quarter of 2013 and by 17.8 percent from the same period last year. Of these, government bonds increased by 23.9 percent from the last quarter of 2013 and by 20 percent from the same period last year reaching US$35 billion, while at the same time corporate bonds reduced by 12.6 percent and 43.1 percent, respectively, reaching about US$600 million./.

Viet Anh