The Hanoitimes - The purposes are to extend the maturity of government bonds and diversify investors in the government bond market, stated the Ministry of Finance (MoF). Vietnam's government bond market is considered small compared to other countries in the region, requiring solutions to expand its scale and become an efficient capital mobilization channel for the state budget. Illustrative photo. Under the government instruction, the MoF is tasked with restructuring public debt for the purpose of extending the maturity of outstanding government bonds and diversifying investors in the government bond market. Recently, as government bonds were issued in the market with various maturities, investors were diversified, translating into a sharp reduction in the holding rate of commercial banks. As of the end of July, the holding rate of commercial banks was 51.1% (a sharp decrease compared to the rate of 79.7% in 2014), equivalent to that in regional countries such … [Read more...] about Vietnam finance ministry seeks ways to expand government bond market
Government bond
VND2.3 trillion raised from Government bonds
Illustrative image (Source: VNA) The auction aimed to sell VND7 trillion (US$300.4 million) worth of G-bonds with 5-year, 7-year, 10-year, 15-year, 20-year and 30-year maturity. Five bidders bought 7-year bonds at VND100 billion (US$4.29 million) with average yield rate of 3.9%/year, the same interest rate with the previous auction (July 25). Bonds with 10-year term fetched VND2.2 trillion (over US$94.3 million) with annual interest rate of 4.5%, up by 0.02% against the previous auction. There were no successful bids for 5-year, 15-year, 20-year and 30-year bonds. From the beginning of 2018, the State Treasury mobilised over VND92.3 trillion (over US$3.96 billion) through G-bond auctions at the HNX. The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes from last year thanks to economic growth of more than 6.7% and inflation below 4 percent. It expects the value of G-bonds issued this year to reach VND180 trillion … [Read more...] about VND2.3 trillion raised from Government bonds
2.3 trillion VND raised from Government bonds
Illustrative image (Source: VNA) Hanoi (VNA) - The Hanoi Stock Exchange (HNX) raised 2.3 trillion VND (over 98.7 million USD) at the latest auction of Government bonds (G-bonds) issued by the State Treasury on August 1. The auction aimed to sell 7 trillion VND (300.4 million USD) worth of G-bonds with 5-year, 7-year, 10-year, 15-year, 20-year and 30-year maturity. Five bidders bought 7-year bonds at 100 billion VND (4.29 million USD) with average yield rate of 3.9 percent/year, the same interest rate with the previous auction (July 25). Bonds with 10-year term fetched 2.2 trillion VND (over 94.3 million USD) with annual interest rate of 4.5 percent, up by 0.02 percent against the previous auction. There were no successful bids for 5-year, 15-year, 20-year and 30-year bonds. From the beginning of 2018, the State Treasury mobilised over 92.3 trillion VND (over 3.96 billion USD) through G-bond auctions at the HNX. The National Financial Supervisory Commission has predicted that the … [Read more...] about 2.3 trillion VND raised from Government bonds
Solutions sought to boost foreign investment in government bonds
Vietnam’s Government bond market needs to be made more appealing.(Photo: tapchitaichinh.vn) Hanoi (VNA) – Vietnam’s Government bond market needs to be made more appealing, as recent years have seen a lack of foreign participation. In the first five month of 2018, foreigners bought 1.5 trillion VND (65.9 million USD) worth of Government bonds in the primary market and 3 trillion VND (131.85 million USD) in the secondary market. The figures were 20.8 trillion VND (914.16 million USD) and 12.6 trillion VND (553.77 million), respectively in 2016, and 10.3 trillion VND and 20.5 trillion VND in 2017. In 2017, bond transactions involving the foreign sector accounted for less than 5.1 percent of the total value issued in the primary market. The figure was 6.1 percent in the secondary market. However, a positive change was recorded in the rate of foreign ownership in the Government bond market, which increased from 4.5 percent in 2015 to 5 percent in 2017. In 2016 and … [Read more...] about Solutions sought to boost foreign investment in government bonds
Government bond market stronger than ever
(VEN) - Nine years since its launch, the government bond market is viewed as an effective channel to raise funds for the state budget. The Vietnamese bond market has been one of the fastest growing in the world’s emerging economies According to the Hanoi Stock Exchange (HNX), from 2009 to February 2018, by auctioning government bonds on the HNX, the state raised VND1,500 trillion for the budget at interest rates of 0.8-1.5 percent a year. This capital has been allocated to investment programs for socioeconomic development. Before 2014, government bonds were mobilized at maturity periods from two to five years. However, at present, maturity periods of over five years are quite popular with the funds and insurance companies. Investors are also interested in 15-year, 20-year and 30-year terms. According to the HNX, non-bank investors are participating more in the bond market. About 44.6 percent of market members in the primary bond market are non-bank financial … [Read more...] about Government bond market stronger than ever