Vietnam’s Government Inspectorate found that several banks misused proceeds from corporate bond issuances, amounting to thousands of billions of dong, Dan Tri has reported → view source.
From 2015 to mid-2023, five commercial banks—MB, ACB, VPBank, VIB, and OCB—issued VND 255.1 trillion or US$9.8 billion in corporate bonds, mostly unsecured, to fund customer lending.
Three of these banks, including ACB and MB, used funds for purposes other than those stated in their issuance plans and disclosures.
At ACB, for example, some bonds were used for medium- and short-term loans, despite the stated goal of supporting medium- and long-term credit.
At MB, proceeds from 11 bond codes worth VND 1.92 trillion or US$73.8 million issued in 2022 were used for lending rather than investment, contrary to their declared purpose of supplementing long-term Tier 2 capital.
VIB and MB were also cited for not clearly disclosing disbursement schedules in pre-issuance documents between 2021 and mid-2023.
For background
Vietnam’s corporate bond market expanded rapidly before 2022, fuelled by strong demand from property developers and commercial banks seeking new sources of capital.
The market’s fast growth, however, outpaced the development of supporting regulations, with weak disclosure standards, limited institutional oversight, and a heavy reliance on private placements.
By 2022, this imbalance led to a severe loss of confidence. High-profile scandals involving issuers such as Tan Hoang Minh, Louis Holdings, and Van Thinh Phat exposed widespread misconduct, from fraudulent bond sales to misuse of proceeds.
Defaults surged, liquidity dried up, and investors began withdrawing from the market, triggering a sharp fall in new bond issuance.
The crisis prompted a sweeping regulatory crackdown, forcing issuers to unwind questionable debt structures and prompting authorities to tighten controls on private bond placements, transparency, and investor eligibility.
Hence, the aforementioned inspection.
Bonds this year so far
Of note, by the end of August, corporate bond private placements stood at VND 311,725 billion (US$12 billion) and public offerings at VND 47,785 billion (US$1.84 billion) for the year to date.
Notably, by the end of 2025, about VND 69,740 billion (US$2.68 billion) in bonds will reach maturity, with real estate making up the largest share at VND 29,883 billion (US$1.15 billion), or 49 percent.
Learn more about Vietnam’s financial sector →
Stocks in this article
MBB (Military Commercial Joint Stock Bank)
A major Vietnamese lender founded in 1994 and backed by the Ministry of Defence.
MBB closed at VND 27,100 on Friday down 0.1 percent with 435,291,000 shares traded, worth VND 1,190,859 million.
Foreign ownership in MBB is currently capped at 23.2 percent, with current foreign ownership sitting at 21.8 percent.
ACB (Asia Commercial Joint Stock Bank)
Established in 1993, ACB is one of Vietnam’s largest private banks, known for its retail and SME focus.
ACB closed at VND 25,750 on Friday down 0.55 percent with 162,896,000 shares traded, worth VND 424,412 million.
Foreign ownership in ACB is currently capped at 30.0 percent, with current foreign ownership sitting at 29.9 percent.
VPB (Vietnam Prosperity Joint Stock Commercial Bank)
Founded in 1993, VPBank targets consumer lending, SMEs, and digital banking
VPB closed at VND 31,950 on Friday down 1.25 percent with 502,872,000 shares traded, worth VND 1,641,259 million.
Foreign ownership in VPB is currently capped at 30.0 percent, with current foreign ownership sitting at 23.9 percent.
VIB (Vietnam International Commercial Joint Stock Bank)
Established in 1996, VIB specialises in retail and personal finance, including mortgages, auto loans, and credit cards.
VIB closed at VND 19,700 on Friday down 0.3 percent with 126,302,000 shares traded, worth VND 251,201 million.
Foreign ownership in VIB is currently capped at 5.0 percent, with current foreign ownership sitting at 5.0 percent.
OCB (Orient Commercial Joint Stock Bank)
Founded in 1996, OCB focuses on retail and SME lending, trade finance, and digital services.
OCB closed at VND 12,900 on Friday down 0.1 percent with 30,865,000 shares traded, worth VND 40,062 million.
Foreign ownership in OCB is currently capped at 22.0 percent, with current foreign ownership sitting at 19.5 percent.