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Vietnam bond market bounces back after reforms delayed

Vietnam’s bond market has bounced back after regulatory reforms, instituted after broad ranging bond fraud was revealed last year, were rolled back, Tuoi Tre is reporting. Of particular note, this article credits delayed regulations on compulsory credit ratings as chief among the reasons that the market was revived.

Also of note, of December 15, 

  • 78 businesses had issued corporate bonds;
  • A total of VND 237,400 billion (US$9.75 billion) worth of bonds had been issued;
  • Of those just VND 900 billion (US$37 million) were issued before Decree 08 came into effect;
  • The remaining  VND 236,500 billion were issued after (US$9.72 billion); and
  • Overall the value of corporate bonds issued was 28.6 percent lower than in 2022.

This may be a problem coming down the pipeline. If firms were reluctant to issue bonds because they needed to be assessed and rated by a credit-rating agency it could suggest they may have something to hide.

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