G-bonds in 2017 had an average interest rate of some 6.07 percent per year, down 0.2 percentage points against 2016. (Photo: thoibaotaichinh.vn)
Hanoi (VNA) - G-bondsworth 159.9 trillion VND (7.04 billion USD) and havingan average maturity of 13.52 years, up 4.81 years against 2016, wereissued last year, according to the Ministry of Finance.
The bonds had an averageinterest rate of some 6.07 percent per year, down 0.2 percentagepoints against 2016.
The National FinancialSupervisory Commission forecast that the G-bond market in 2018 would see modestchange thanks to the economic growth of more than 6.7 percent and inflation ofbelow 4 percent.
The value ofG-bonds issued in 2018 is estimated at some 180 trillion VND, with the focus being onlong term maturity and keeping the interest rate at lowlevels.
The Government in 2017approved the roadmap for the development of the bond marketfrom 2017 to 2020 with a vision for 2030, in which thethe outstanding debt in Vietnam’s bond market is targeted at 45 percent of the total GDP in 2020and some 65 percent of the GDPin 2030.
Under the plan, theoutstanding debt of the Government bond, Government-guaranteed bond andmunicipal bond market is aimed at some 38 percentof the total GDP in 2020 and 45 percent in 2030. The corporate bondmarket’s outstanding debt is expected to reach some 7 percentof the GDP in 2020.
The roadmap aims for stabledevelopment, larger size and better quality of Vietnam’s bond market,which should have more diverse products, proactively integrate into the globalmarket, and gradually operate, in line with international standards andpractices.
For this, Vietnam is set tocomplete its policy framework for the bond market, develop the primary andsecondary markets, diversify investors, and facilitate intermediaryinstitutions and market services.-VNA
VNA
