Vietnam’s banks issued 42,147 billion or US$1.51 billion worth of bonds in June across 24 bond issuances, according to data from the Vietnam Bond Market Association. This was a significant jump over May in which they carried out just 19 bond issuance worth VND 9,945 billion or US$391.2 million.
Of note, deposit interest rates have been rising alongside loans issued by the State Bank of Vietnam to local banks through open market operations–there are currently VND 22,765 billion or US$895.5 million worth of these loans outstanding.
It’s also worth noting that credit growth jumped significantly in June reaching 4.45 percent by the 24th. This was significant in that at the end of May credit growth was just 2.41 percent.
That said, it’s not really clear yet where this increased demand is coming from.