Vietnam Stocks Sink 5% on Fears of Renewed Credit-Market Squeeze

Vietnamese stocks tumbled the most in six months amid renewed concerns that tighter scrutiny of corporate bond issuance may once again freeze credit and weigh on growth.

The VN Index tumbled 5.5% at the close on Monday, the most since April 8. Vingroup, Vinhomes and Bank for Foreign Trade of Vietnam were among the biggest drags on the measure.

The Government Inspectorate of Vietnam on Friday released findings from an inspection of 67 bond issuers, including five banks, that highlighted “various violations,” according to local media reports. The offenses include misuse of proceeds, inadequate disclosures, poor capital management, ...