Business

Analysts suggest halting new G-bonds

The Government should limit or temporarily stop issuing new Government bonds during the remaining months of the year while waiting for the improvement of public investment disbursement.
Analysts suggest halting new G-bonds ảnh 1

The Government should limit or temporarily stop issuing new Government bonds during the remaining months of the year while waiting for the improvement of public investment disbursement.
(Photo: ndh.vn)


Hanoi (VNA)- The Government should limit or temporarily stop issuing new Government bondsduring the remaining months of the year while waiting for the improvement ofpublic investment disbursement.

According to analysts atBao Viet Securities Company (BVSC), the halt will help the State budget partlyreduce the cost of paying interest for loans that are temporarily not needed.

The recommendation wasmade after reports showed the State Treasury deposits some 160 trillion VND (7billion USD) at commercial banks in the first eight months, up 68 percentagainst early this year, due to sluggish public investment disbursement.

Statistics showed thatcapital mobilised from the issue of G-bonds in the first eight months of thisyear was very positive, however, it was quite a contrast to the disbursement ofthe capital source.

According to the Ministryof Finance, total capital mobilised from G-bonds in the first eight months ofthis year reached nearly 144.1 trillion VND (6.34 billion USD), equal to 78.6 percentof the annual plan.

However, unlike thesuccess of G-bond mobilisation, disbursement of the capital source during theperiod was very slow. Just 2.46 trillion VND was disbursed, equal to only 4.9 percentof the plan.

In a bid to speed updisbursement, Minister of Planning and Investment Nguyen Chi Dung recently senta dispatch to ministries and central and localities to urgently report on theimplementation of Resolution No 70 / NQ-CP, dated August 3, on solutionsto accelerate the implementation and disbursement of public investment plans.

Dung also proposedspecific solutions to effectively implement the public investmentplan, including a resolute cut in capital for projects that are unlikelyto disburse any funds in 2017 and allocate the capital for other important andurgent projects.

The Government will notinclude projects that use State domestic capital budget in next year’s capitalallocation plan if the projects’ disbursement meets less than 30 percent of thisyear’s plan.

Previously, due to theslow disbursement of public investment, including G-bond capital, PrimeMinister Nguyen Xuan Phuc also had to ask authorities to take more drasticmeasures to rectify the late disbursement of investment capital for publicprojects, noting that the slow disbursement of public investment leads to abottleneck in national economic growth and rising public debt.

Thirty ministries andprovinces reported slow disbursement of public investment, mainly due to thelack of proper direction by heads of ministries and localities, in addition toinadequacies of related procedures, slow land clearance and limited capacity ofproject contractors.-VNA
VNA
#Government bonds #public investment disbursement #Bao Viet Securities Company #State budget #Resolution No 70 / NQ-CP #vietnamplus
Follow VietnamPlus

Related News

New payment mode for G-bonds launched

New payment mode for G-bonds launched

The new payment mode for transactions of Government bonds through the State Bank of Vietnam (SBV) instead of through a commercial bank was launched in Hanoi on August 1.
Over 3.1 trillion VND raised from Government bonds

Over 3.1 trillion VND raised from Government bonds

The Hanoi Stock Exchange (HNX) raised more than 3.1 trillion VND (136 million USD) through 17 auctions of Government bonds issued by the State Treasury in August, down 79 percent against the previous month.
G-bond capital disbursed slowly

G-bond capital disbursed slowly

Capital mobilised from the issue of G-bonds in the first eight months of this year was very positive, however, it was quite a contrast to the disbursement of the capital source.
G-bond transactions on sharp rise

G-bond transactions on sharp rise

Total government bond (G bond) transaction value hit more than 1.5 quadrillion VND (65.9 billion USD) in the first nine months of the year, up 42.4 percent year-on-year, according to the Hanoi Stock Exchange (HNX).

See more

At Nestlé Vietnam factory in Hung Yen province (Photo: VNA)

Vietnam seeks to build stronger ecosystem for FDI

The World Bank has stressed the need to connect global companies with domestic suppliers, improve the business climate and develop supply-chain finance solutions. Those steps will let domestic firms gradually meet requirements on quality, technology, costs and delivery times, and position them to become suppliers to multinational corporations.

Construction of technical infrastructure facilities serving APEC 2027 in Phu Quoc Special Zone, An Giang province. (Illustrative photo: VNA)

Vietnam enters investment grade credit rating category for first time

Vietnam has maintained robust growth, outperforming other Southeast Asian economies. Its ongoing government reforms aimed at streamlining the state apparatus, promoting the private sector, improving the institutional framework and developing capital markets will strengthen the country’s growth potential and economic resilience.

Vietnamese Prime Minister Le Minh Hung and Lao Prime Minister Saleumxay Kommasith witness the presentation of investment certificates and investment cooperation agreements between businesses of the two countries. (Photo: VNA)

Vietnam, Laos strengthen “strategic cohesion” in economic sector

The great friendship, special solidarity, comprehensive cooperation and strategic cohesion between Vietnam and Laos, and between Laos and Vietnam, are an invaluable asset of the Vietnamese and Lao Parties, States and people. It is the responsibility of today's generation to transform this invaluable political asset into new resources for the development of the two countries’ people.

West Food Hau Giang JSC’s factory at the Nam Song Hau Industrial Park – Phase 1, Can Tho city (Photo: VNA)

Southern industrial property market enters new phase of competition

Industrial site selection was previously driven largely by land prices, location and access to markets. However, as supply chains become more complex and manufacturing projects face higher technical requirements, businesses are increasingly assessing sites based on their long-term operational capabilities.

Members of the RoK delegation visit booths showcasing signature agricultural products of Da Lat – Lam Dong. (Photo: VNA)

Lam Dong seeks stronger economic, tourism links with RoK

Lam Dong is particularly interested in sectors in which Korean businesses have strengths, including agriculture, green energy, the circular economy, high-quality tourism, healthcare, education, human resources training and digital transformation, an official said.

Illustrative image (Photo: EVNNPT)

EVNNPT seeks over 224 mln USD in bank loans for grid expansion

Three projects account for part of the financing need, including 13.3 million EUR for the 220kV Ung Hoa substation and connection lines, 18.6 million EUR for the 220kV Tan Viet substation and the 220kV Tan Viet–Gia Loc–Pho Noi line, and 35.3 million EUR for the 220kV substation connecting the Dong Anh–Van Tri transmission line.

At a farm produce supermarket in Hue city (Photo: VNA)

Inflation control key to maintaining growth momentum

Average consumer price index (CPI) rose 4.52% in the first nine months, roughly in line with the National Assembly (NA)'s full-year target, while core inflation climbed 4.26%, the National Statistics Office (NSO) reported. CPI in some localities ran above the national average, including economic hubs Hanoi and Ho Chi Minh City.

According to experts, Vietnam’s relatively attractive valuation could help draw active investors. (Photo: VNA)

Capital-market channels widened after FTSE upgrade: expert

Vietnam officially entered FTSE Russell’s Secondary Emerging Market category on September 21 after reforms to trading, settlement and foreign-investor access. The reclassification gives Vietnamese equities access to a much larger pool of international capital, but also puts them in direct competition with other emerging markets.

Lao products are promoted at a trade fair in Dien Bien province in September 2026. (Photo: VNA)

Vietnam, Laos seek to expand room for trade, investment cooperation

Vietnam and Laos aim to boost bilateral trade in 2026 towards the milestone of 10 billion USD by 2030, a target said to be challenging but feasible as both Governments work to remove trade barriers, improve border-trade mechanisms, and strengthen transport and logistics connectivity.

At a garment company in Bac Ninh city. (Photo: VNA)

Bac Ninh maintains its lead nationwide in import-export scale

Exports totaled almost 87.5 billion USD while imports hit 90.3 billion USD. The figures show output at the electronics manufacturing hub is still expanding. They also underscore the need for local companies to build capacity and capture more value in supply chains.