VietNamNet Bridge – The scale of the bond market in Vietnam reached nearly $25 billion, down in the third quarter of 2013, but still obtained the highest growth in the region in comparison with the same period last year, according to the Asian Development Bank (ADB).

ADB has released its quarterly report on the Asian bond market. The government bond market of Vietnam from July to September fell by 8.7 percent from the previous quarter, mainly due to the declining demand for treasuries. The corporate bond market also decreased by 54.1 percent compared to the same period of last year and 10 percent from the previous quarter.

However, Vietnam still gained the highest growth rate among the emerging markets of East Asia, with an increase of 18.8 percent year on year, reaching $25 billion. In particular, the government bond market increased by 24.8 percent, reaching $24 billion while the corporate bond market in the third quarter stood at $700 million.

Compared to the same period of last year, Vietnam's bond market had the fastest growth in the region.

In the region, the ADB said that the East Asian countries are at risk when the U.S. will certainly downsize its asset purchase program. The fluctuation of capital flows will raise more difficulties for policymakers to manage the economy. Liquidity constraints could reduce property prices, especially in real estate, making the situation of financial companies that hold these assets become much more difficult.

Son Tung