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Trade War Has Vietnamese Companies Raising Capital With Bonds Over Stocks

Inside Irex Energy's Solar Panel Factory in Vietman
Photographer: Yen Duong/Bloomberg

Vietnamese companies have been moving to bond sales from equities for capital raising as trade tensions triggered stock market volatility.

Local companies raised about 117 trillion dong ($5 billion) from bond sales in the first eight months of this year, with the scale accounting for about 11% of Vietnam’s economy versus 8.6% for all of 2018, SSI Securities Corp. wrote in a note to investors. Share sales fetched only $45.1 million in the period, equal to just 6.4% of their value a year earlier, data compiled by Bloomberg shows.