(VOVworld) – Deputies at the current National Assembly session on Friday reviewed the implementation of the law on practicing thrift and preventing wastefulness in using government bonds for capital construction in the period from 2006 to 2012. During the debate, deputies agreed on the need to issue government bonds as a source of capital to develop the economy, ensure social security, and improve lives in rural and remote areas. However, they acknowledged shortcomings in the use of the bonds. Nguyen Thi Kha, a deputy from Tra Vinh province said: “Transparency in investment, bidding and monitoring in capital construction is needed in line with the law on constructions and other related laws. Political and social organizations and the people should be involved in inspections and monitoring. I proposed that government bonds be included in the state budget and that projects using government bonds be reviewed to avoid wastefulness.” Deputy Prime Minister Nguyen Thien … [Read more...] about Raising the effectiveness of government bonds in capital construction
Government bond
Government bonds more attractive after improved credit rating
VietNamNet Bridge – The government bond market is expect to set a new record in volume and value this year. The State Treasury on July 29 issued VND8 trillion worth of government bonds through auction. The amount of bonds offered to buy reached VND20 trillion. The auction had the highest-ever ordered value, and one of several with the biggest volume of bonds put on sale. All the VND8 trillion worth of bonds have been sold, which included VND1 trillion worth of 2-year bonds, VND2 trillion worth of 3-year bonds, VND3 trillion worth of 5-year bonds and VND2 trillion worth of 10-year bonds. Analysts noted that though the interest rate of 5-year and shorter-term bonds has decreased sharply, government bonds remain very attractive in the eyes of investors, especially commercial banks. A report of the Hanoi Stock Exchange (HNX), where the July 29 government bond auction was organized, showed that the two-year bonds were sold at the interest rate of 5.25 percent per annum, lower by 0.12 … [Read more...] about Government bonds more attractive after improved credit rating
Banks refuse government bonds because of low interest rates
VietNamNet Bridge – Commercial banks have made a volte face, refusing to buy government bonds because the offered interest rates are lower than their expected levels. Government bond sales have been selling more slowly because commercial banks, the biggest bond buyers, have turned their back on the bond issuances. According to Vietcombank Securities and the Hanoi Stock Exchange, the value of bonds issued on the primary market in June 2013 was VND11.456 trillion, a sharp decrease of 52.7 percent over the same period of the last year, the deepest low since November 2012. The interest rates decreased continuously in the period from September 2012 to May 2013. In the first five months of 2013 alone, the interest rates reduced by 2-2.17 percent, which was equal the interest rate reduction in the whole year 2012. The interest rate just witnessed a light recovery in June 2013, according to Vietcombank Securities. “Cold” and “gloomy” were the words the … [Read more...] about Banks refuse government bonds because of low interest rates
HNX sells VND3.8 trillion of Government bonds in May
The Hanoitimes - The Hanoi Stock Exchange (HNX) held 24 auctions of Government bonds gaining over 3.8 trillion VND in May. Thu Minh … [Read more...] about HNX sells VND3.8 trillion of Government bonds in May
Woori Bank to buy, sell government bonds
Woori Bank established in 1899 in South Korea . — Photo bloomberg.com HA NOI (Biz Hub) — The State Bank of Viet Nam granted permission to the South Korean Woori Bank's branches in HCM City and Ha Noi to buy and sell government bonds on October 30. SBV's permission has been added to the licences granted to Woori Bank in 2005 and 2007 respectively, for opening its branches in the two cities. Woori Bank, established in 1899 in South Korea with that country's capital, has operated its general banking business during the modernisation and industrialisation periods. — VNS … [Read more...] about Woori Bank to buy, sell government bonds