With the rate of 18.8 per cent, Viet Nam had the fastest growing bond market, followed by Indonesia (16.3 per cent), China (14.4 per cent), Philippines (12.5 per cent), and South Korea (10.4 per cent).— Photo vinacorp

HA NOI (Biz Hub)— Viet Nam leads the emerging East Asian bond market in terms of its market growth on an annual basis, according to Asian Development Bank's Asia Bond Monitor report.

With the rate of 18.8 per cent, Viet Nam had the fastest growing bond market, followed by Indonesia (16.3 per cent), China (14.4 per cent), Philippines (12.5 per cent), and South Korea (10.4 per cent).

Despite having the highest growth rate, the Vietnamese bond market shrank a sizeable 8.8 per cent quarter-on-quarter at the end of September to VND527.3 trillion (US$25 billion), reflecting steep declines in the size of both the Government and corporate bond markets, said the report.

Government bonds were down 8.7 per cent quarter-on-quarter to VND511.9 trillion ($24.37 billion) at the end of September, dropping for the second consecutive quarter due to a decline in the demand for treasury bonds, according to the report.

In addition, the size of Viet Nam's corporate bond market plunged another 10 per cent to VND15.4 trillion ($630 million) in the third quarter this year, following a 22.5 per cent drop in the previous quarter.

The report said that local currency corporate bonds tumbled due to zero issuance of corporate debt for the third consecutive quarter.

The corporate bond market in Viet Nam comprised 17 corporate entities at the end of the third quarter. Real estate company Hoang Anh Gia Lai Group leads the market with bonds outstanding to the tune of VND3 trillion ($142.85 million). — VNS