Vietnam’s stock market tumbled sharply on Monday after the Government Inspectorate reported that three of the country’s five largest commercial banks had misused trillions of dong raised through corporate bond issuances between 2015 and 2023.
The investigation found that Asia Commercial Bank (ACB) and Military Bank (MB) diverted proceeds from bond issuances into short-term lending instead of the designated long-term investment projects, violating issuance conditions. Additionally, the report cited weak tracking systems and disclosure failures at both banks, as well as at Vietnam International Bank (VIB).
Following the release of the report, the Vietnam Index (VNI) plunged 5.18%, reflecting widespread investor concerns over regulatory breaches and the potential impact on financial stability.
Analysts noted that the findings could trigger further scrutiny of Vietnam’s banking sector and its role in the corporate bond market, which has faced pressure amid tighter oversight and liquidity challenges since 2022.
