Vietnam Stock Market Plummets Amid Corporate Bond Violations

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Vietnam Stock Market Plummets Amid Corporate Bond Violations
Photo: Jae C. Hong AP/TT

Vietnam is shaken by a wave of stock market unrest since an inspection presented on Friday revealed rule violations on the market for corporate bonds.

In the review, the authorities have taken a closer look at how 67 companies, including five banks, have handled their bond transactions.

The Ho Chi Minh Stock Exchange plummeted 5.5 percent in turbulent trading on Monday. Among the companies that fell the most are Vingroup, Vinhomes, and Bank of Foreign Trade of Vietnam.

The bond loans are, according to the review, among other things, used for the wrong purpose. There are also reports of inadequate reporting, inadequate capital management, and delays when it comes to amortization and interest payments.

Despite Monday's decline, the Ho Chi Minh Stock Exchange in Vietnam has risen 29 percent since the turn of the year, or 25 percent currency-adjusted.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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