Vietnam’s Government bond market celebrated its third birthday on September 24, having raised a significant portion of the State budget since its inception in September 2009.

The total amount of bonds sold during the period totals 224.7 trillion VND (10.7 billion USD), while some auctions have seen winning bids reach up to 6-7 trillion VND (285.7-333.3 million USD).

Meanwhile, the number of participants has now increased to 84 members.

For these participants, bond yields are the most important factor. Prior to 2009, bonds were yielding higher rates than on the money market. However, since the bond market was formed, the yields have been 1-2 percent per year lower.

"The Government bond market is improving its transparency day by day," a spokesman for the Hanoi Stock Exchange said. The scale of the market has grown steadily over the years, from 159.54 trillion VND (7.5 billion USD) in 2009 to 339.34 trillion VND (16.1 billion USD) as of August this year.

Although the number of listed bonds has declined from 500 to the current amount of 428 codes, the total value increased, forming large-cap bonds and boosting liquidity.

As the operator of the market, the exchange plans to establish a bond index and derivatives, diversifying trading tools and helping reduce market risks.

In August, the Hanoi Stock Exchange launched the electronic bidding system, connecting itself with bidders and management agencies.

The system contributed to shortening the time from bonds being issued to listed, the exchange said. In addition, it officially brought T-bills into operation, with the hope of developing a yield curve.-VNA