The decline was due to the maturing of all outstanding central bank bills, which more than offset the marginal increase in both Treasury bonds and corporate bonds, stated the report. 

In the fourth quarter of 2018, corporate bond issuance reached VND7.7 trillion (US$333.80 million), declining 10.7% quarter-on-quarter and 59.9% year-on-year. 

At the end of December, the aggregate outstanding bonds of Vietnam’s 30 largest corporate LCY bond issuers amounted to VND95.6 trillion (US$4.18 billion), representing 96.3% of the total LCY corporate bond stock. Taking the top spot was Vinhomes, a real estate investment arm of conglomerate Vingroup, which bumped Masan Consumer Holdings down to the second spot. 

Overall, investor sentiment toward emerging East Asia’s local currency bond markets has improved but there are persistent concerns about financial stability in the region, including ongoing trade conflicts
At the end of 2018, there were US$13.1 trillion in local currency bonds outstanding in emerging East Asia, 2.4% more than at the end of September 2018 and 11.9% more than at the end of 2017.

Moreover, yields have fallen while foreign holdings have increased in most markets. 

“Risks to financial stability in emerging East Asia have receded somewhat recently,” said ADB Chief Economist Yasuyuki Sawada. 

“However, some uncertainties persist, notably from the unresolved trade conflict between China and the US, a potentially disorderly exit of the UK from the European Union, and slowdown of global growth momentum. The rapid buildup in private debt during the past decade could also damage economies and financial stability in the region,” said Sawada.