Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Vietnam’s local currency bond market grew 2.6 percentto 52.9 billion USD in the second quarter of this year, after a 0.7 percentexpansion in the first quarter.
This information waspart of the latest report of the Asian Development Bank’s (ADB) Asia BondMonitor.
The report shows Vietnam’sgrowth was mainly on the back of the 3.2 percent expansion of the Governmentbond market to 48 billion USD due to issuance of Treasury bonds and centralbank bills.
“The growth in theGovernment bond market offset the 3.4 percent contraction of the corporate bondmarket during the second quarter of 2019 to 5 billion USD,” the report said.
According to the report,emerging East Asia’s local currency bond market expanded steadily in the secondquarter of 2019 despite downside risks stemming from ongoing trade conflicts, afaster-than-expected economic slowdown in the People’s Republic of China (PRC),and moderating global growth.
Emerging East Asiacountries and territories comprises of Hong Kong, China; Indonesia; theRepublic of Korea; Malaysia; the Philippines; Singapore; Thailand and Vietnam.
ADB Chief EconomistYasuyuki Sawada said foreign investment in emerging East Asia remains stablebut there are still considerable potential risks. Financial stability in theregion could be undermined if global investors change their views on emergingmarkets.
“Governments in theregion would do well to continue to deepen local currency bond markets so theycan act as a reliable local source of funding,” Sawada.
Local currency bondsoutstanding in emerging East Asia totalled 15.3 trillion USD at the end ofJune, up 3.5 percent in US dollar terms from the end of March this year and14.2 percent higher than the end of June 2018. Bond issuance in emerging EastAsia totalled 1.6 trillion USD in the second quarter, 12.2 percent higher thanin the first quarter due to strong issuance of government bonds and a recoveryin corporate bonds issuance.
The PRC remainedemerging East Asia’s largest bond market, accounting for 75.3 percent of theregion’s total outstanding paper.
At the end of June, therewere 9.4 trillion USD in local currency government bonds outstanding, 13.6 percenthigher than at end June 2018. The stock of corporate bonds was 5.8 trillion USD,up 15 percent compared with end June 2018./.
This information waspart of the latest report of the Asian Development Bank’s (ADB) Asia BondMonitor.
The report shows Vietnam’sgrowth was mainly on the back of the 3.2 percent expansion of the Governmentbond market to 48 billion USD due to issuance of Treasury bonds and centralbank bills.
“The growth in theGovernment bond market offset the 3.4 percent contraction of the corporate bondmarket during the second quarter of 2019 to 5 billion USD,” the report said.
According to the report,emerging East Asia’s local currency bond market expanded steadily in the secondquarter of 2019 despite downside risks stemming from ongoing trade conflicts, afaster-than-expected economic slowdown in the People’s Republic of China (PRC),and moderating global growth.
Emerging East Asiacountries and territories comprises of Hong Kong, China; Indonesia; theRepublic of Korea; Malaysia; the Philippines; Singapore; Thailand and Vietnam.
ADB Chief EconomistYasuyuki Sawada said foreign investment in emerging East Asia remains stablebut there are still considerable potential risks. Financial stability in theregion could be undermined if global investors change their views on emergingmarkets.
“Governments in theregion would do well to continue to deepen local currency bond markets so theycan act as a reliable local source of funding,” Sawada.
Local currency bondsoutstanding in emerging East Asia totalled 15.3 trillion USD at the end ofJune, up 3.5 percent in US dollar terms from the end of March this year and14.2 percent higher than the end of June 2018. Bond issuance in emerging EastAsia totalled 1.6 trillion USD in the second quarter, 12.2 percent higher thanin the first quarter due to strong issuance of government bonds and a recoveryin corporate bonds issuance.
The PRC remainedemerging East Asia’s largest bond market, accounting for 75.3 percent of theregion’s total outstanding paper.
At the end of June, therewere 9.4 trillion USD in local currency government bonds outstanding, 13.6 percenthigher than at end June 2018. The stock of corporate bonds was 5.8 trillion USD,up 15 percent compared with end June 2018./.
VNA
