Sluggish recovery persists in corporate bond market

August 04, 2023

HCMC – Corporate bond issuance had dropped a staggering 78% as of July 28 compared to the same period last year, according to data from the Ministry of Finance. The outstanding volume of privately-placed corporate bonds currently stands at VND1.02 quadrillion, equivalent to 10.8% of the country’s GDP in 2022, accounting for 8.2% of the total outstanding loans in the economy. In response to market volatility, companies have chosen to repurchase their corporate bonds before their maturity dates, aiming to restructure their capital sources. During a hybrid conference on the implementation of Resolution 33 chaired by Prime Minister Pham Minh Chinh on August 3, the ministry stressed the importance of stabilizing and promoting the corporate bond market. However, individual investors have taken a cautious approach, expressing concerns about the risks associated with corporate bonds distributed by banks.

The source of this news is from The Saigon Times