Vietnam has seen the sharpest stock market drop in Asia this year, as a crackdown on corruption and worries about the real estate market weigh on sentiment. (Photos by Ken Kobayashi)

Vietnam stocks hit by recession fears and graft crackdown

Bear market has echoes of China's corruption scandals and property woes

LIEN HOANG, Nikkei staff writer

December 5, 2022 06:00 JST

HO CHI MINH CITY -- Vietnam's benchmark VN Index is down 31% this year as global recession fears and rising interest rates fueled the steepest equities plunge in Asia.

But Vietnam's stock market meltdown also has echoes of China's property market distress and anti-graft campaign, two factors that rapidly darkened the mood in the Southeast Asian country after a blistering 34% rise in the index in 2021.