Corporate bonds becoming a concern

According to the General Statistics Office, in the first eight months of this year, 85,500 enterprises in Vietnam had ceased operations. When done well, corporate bonds would offer salvation for the country’s economy in the context of banks being overloaded and outstanding credit representing 150 per cent of GDP. Corporate bonds are a risky investment channel when not strictly controlled, however, and could endanger the entire financial system given that many businesses are in debt while facing difficulties from Covid-19.