Vietnam banks may have insufficient funds to invest in debt

According to Bloomberg, Vietnam’s two-year government bonds snapped a three-day rally.

Bloomberg noted that as the end of the year approaches, banks may have less funds to invest in the debt.

In the report, Tran Thi Ngoc Thanh, deputy manager of the investment-banking division at Sacombank Securities Joint-Stock Co. in Ho Chi Minh City, said “Commercial lenders are not interested in bonds as they need to ensure liquidity ahead of the Lunar New Year, when residents usually withdraw deposits.”

View the full report here.