Vietnam’s bond market fastest growing in East Asia

Despite representing a national drop, it still obtained the highest growth among emerging markets in East Asia compared with the same period last year. 

ADB has resealed its quarterly report on the Asian bond market, saying that from July to September this year the government bond market of Vietnam fell by 8.7% from the previous quarter, mainly due to the declining demand for treasuries. 

However, Vietnam’s bond market on an annual basis gained the fastest growth in the region, with a year-on-year increase of 18.8% to US$25 billion. In particular, government bond market registered an increase of 24.8% to US$24 billion while the corporate bond market in the third quarter stood at US$700 million.

The report said East Asia’s emerging local currency bond markets grew 2.4% quarter-on-quarter and 12.5% year-on-year to reach US$7.1 trillion in the third quarter, propelled by growth in both the government and corporate bond sectors. 

Meanwhile, the region’s local currency government bond market expanded 2.1% quarter-on-quarter, up from 1.1% quarterly growth in Q2 in 2013, to level off at US$4.4 trillion. 

Indonesia had the fastest growing bond market in the region during the third quarter, expanding 3.9%, followed by the Philippines (3.6%) and China (3.0%). 

The Asia Bond Monitor reviews recent developments in East Asian local currency bond markets along with the outlook, risks, and policy options. It covers ASEAN’s member countries plus China, Chinese Hong Kong and the Republic of Korea. 

The Manila-based ADB is dedicated to reducing poverty in Asia and the Pacific through exclusive economic growth, environmentally sustainable development and regional integration. Established in 1966, it is owned by 67 members, including 48 from the region. In 2012, the bank’s assistance totaled US$21.6 billion, including co-financing of US$8.3 billion.