Vietnamplus

A total of over 9.52 trillion VND (nearly 411.2 million USD), was raised by the State Treasury through 12 G-bond auctions at the Hanoi Stock Exchange (HNX) in January.

The Ministry of Finance will tighten regulations over corporate bond issuance because of an overheating market to protect investors and prevent risks which might arise from the abuse of this capital raising channel.

The Securities Journalists Club has organise a press conference to announce the top 10 biggest events on Vietnam’s stock market in 2019.

Rising medium- and long-term capital demands to meet stricter regulations on credit safety limits and capital adequacy early next year were putting pressure on commercial banks to issue bonds in the final months of the year, experts said.

At the end of November, the size of the Government bond (G-bond) market was equal to 25.1 percent of the gross domestic product (GDP) of 2019, rising 12-fold from 2009, data show.

Vietnam’s Government bond (G-bond) market would become a safe, effective and highly lucrative investment mechanism for commercial banks, insurance networks, investment funds and foreign investors.

Investors should make careful decisions when purchasing corporate bonds, especially coming with high yield rates, to avoid risks, the Ministry of Finance (MoF) has said.

Deputy Prime Minister Vuong Dinh Hue received Chairman of the China Taiping Insurance Group Luo Xi in Hanoi on November 12, welcoming the firm’s intention to invest in the insurance market of Vietnam.

More than 150 enterprises successfully issued bonds worth total 179.1 trillion VND (7.7 billion USD) in the first nine months of this year, a report on the Hanoi Stock Exchange bond market showed on October 8.

Some members of the national financial and monetary policy advisory council have pointed out certain problems in the economy, warning that failure to address them would not only make faster growth unachievable but also decelerate economic expansion.

Over the past 10 years, the interest rates of successfully-issued Government bonds (G-bonds) have decreased significantly, saving thousands of billions of VND for the State budget, contributing to regulate and stabilise the macroeconomy.

The bond market continued to grow in the second quarter of 2019, by 2.6 percent from Q1, to 52.9 billion USD, including 48 billion USD worth of G-bonds and 5 billion USD worth of corporate bonds.

Vietnam’s local currency bond market grew 2.6 percent to 52.9 billion USD in the second quarter of this year, after a 0.7 percent expansion in the first quarter.

Banks have been the main player in the corporate bond market so far this year, with eight of the top 10 biggest issuers being financial institutions.

Vietnam is making concerted efforts to improve the quality of information disclosure and transparency of corporate bond issues and listings to develop a healthy bond market and reduce risks for investors.

The State Treasury of Vietnam raised over 12.5 trillion VND (543 million USD) worth of government bonds (G-bond) during 16 auctions at the Hanoi Stock Exchange in April, down 11.9 percent from the previous month.

The Master Agreement for Repo Transactions was introduced at the annual meeting of the Vietnam Bond Market Association (VBMA) held in Hanoi on March 12, with 17 members of the association signing an MoU on the use of the master agreement.

Prime Minister Nguyen Xuan Phuc has approved a project to restructure the stock market until 2020 with a vision to 2025, with an aim to make it an important channel for middle- and long-term capital regulation.

The State Treasury of Vietnam has so far this year raised more than 51.24 trillion VND (2.19 billion USD) via Government bond (G-bond) auctions on the Hanoi Stock Exchange (HNX).

Vietnam aims to make the size of its stock market equal to 100 percent and 120 percent of the gross domestic product (GDP) in 2020 and 2025, respectively.