Saturday, 18 Nov 2017

Vietnam aims to develop a stable bond market

Updated at Thursday, 02 Mar 2017, 14:47
The Hanoitimes - The Finance Ministry will refine policies, ensure supply-demand and develop intermediary institution in 2017 to develop a stable bond market, according to a representative of the ministry`s Finance-Banking Department at a press conference in Hanoi on February 28.
According to the report unveiled at the press conference, as many as 281.75 trillion VND (12.25 billion USD) worth of government bonds were issued last year, or 98.3 percent of the yearly target, 91 percent of them offered the maturity of at least five years.
Particularly, 30-year government bonds had been issued to foreign investors for the first time, according to the ministry. 
The report of Finance-Banking Department showed that thanks to restructuring, in 2016, the government debt portfolio attracted capital accounting for 27.3 percent of the gross domestic product, compared to 16.2 percent in 2015.
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Head of the ministry’s Finance-Banking Department Phan Thi Thu Hien said that the Finance Ministry will refine policies, ensure supply-demand and develop intermediary institution this year to develop a stable bond market.
The ministry is intending to submit a roadmap on the development of the bond market for 2017-2020 with a vision to 2030 to the Prime Minister this year, and a decree replacing another one on corporate bond issuance to the Government. 
The ministry plans to issue a Circular on purchasing government bonds to contribute to the restructuring of government debts portfolio. 
The government bond market, set to be a model in the financial market, will offer bonds with 10-year, 15-year, 20-year and 30-year maturity, and those at floating interest rates. 
Besides, the Vietnam Social Insurance’s investment mechanism in the bond market will be renewed in line with the government’s Decree 30/2016/ND-CP while insurance firms, especially life insurance ones, and foreign investors are encouraged to participate in the market. 
More credit rating organisations are expected to be born to improve the openness and transparency of the process of raising bond capital. Meanwhile, the State management agencies will promoted liaison with the Vietnam Bond Market Association along the process. 
In order to develop the domestic bond market in line with international practices, the ministry targets to further focus on strengthening international cooperation. 
Translated by Thu Minh
Source: Nha
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