Vietnam's State Treasury is targeting 250 trillion VND (11.68 billion USD) by issuing five-year Government bonds this year, down 4.6 percent from a year ago, said the Ministry of Finance.

Of this, 180 trillion VND (8.4 billion USD) will be mobilised through five-year bonds, 50 trillion VND (2.33 billion USD) through 10-year bonds and 20 trillion VND (934.5 million USD) through 15-year bonds.

Speaking at the conference on the members of the Government bond market 2015 held in Hanoi this week, Finance Deputy Minister Tran Xuan Ha hailed the efforts of its members, issuing organisations, the Hanoi Stock Exchange (HNX) and the Vietnam Security Deposit (VSD) in contributing to the market's development.

Ha said their strategic duty is to ensure capital for the State budget and that development activities have set targets, with terms longer than five years.

They should also work to enhance liquidity and transparency.

HNX should also prepare a facility and legal framework for the development of derivatives market, Ha added.

The exchange said it will develop the government bond market comprehensively, raising transaction value and liquidity while actively supporting the mobilisation of the State budget and the country's socio-economic development.

Its online bond transactions will be completed at a faster pace. It will also cooperate with relevant agencies to develop new products, such as Zero Coupon Bond, which is being developed by the Ministry of Finance and the State Securities Commission (SCC).

This year, HNX will also concentrate on building the enterprise bond market project and submit a proposal about the same to the Ministry and the SCC for approval.

Over the past five years, the Government bond market has developed rapidly, contributing to the Government through capital mobilisation and creating liquidity for the secondary market.

Data from HNX showed that around 28 trillion VND (1.3 billion USD) worth of Government bonds were sold in January alone, accounting for 83 percent of the total issue.

The interest rate for auctioned bonds was lower than the average seen in previous years, despite a higher rate and number of bonds sold.

At the auction on January 29, more than 8.4 trillion VND (392.5 million USD) was mobilised, including 6 trillion VND (280.3 million USD) from five-year bonds.

In addition, the Vietnam Development Bank (VDB) mobilised 9 trillion VND (420.5 million USD) by issuing Government bonds.

HNX said the results of the auctions this year revealed that money has flowed into the market. Banks are keen on short-term bonds, with a lower interest rate than the one reported in 2014.
However, banks have encountered difficulties, despite the attractiveness of the investment channel.-VNA