The yield of Government bonds (G-bond) has continued to decline and hit seven-month lows as the US Federal Reserve (Fed) seems unlikely to hike interest rates and the domestic monetary market has shown positive movements.
In recent years, the Government bond market has become an important capital mobilisation channel for Vietnam. However, the scale of the country’s bond market is modest compared to national economic scale and to other regional countries.
The Hanoi Stock exchange (HNX) has improved its share, bond and derivatives markets considerably in 2018 and will continue to enhance the markets’ operation in 2019.
Vietnamese companies are depending too much on bank loans, and when the number of companies increases, it will reduce their chance of receiving financing from financial institutions.
Vietnam remained the smallest local currency bond market among nine economies of emerging East Asia, according to the latest edition of the Asian Development Bank’s (ADB) Asia Bond Monitor.
The Japan International Cooperation Agency (JICA) will carry out a project to help Vietnam improve the fairness and transparency of its stock market, according to a document on the November 5 meeting between the agency and the State Securities Commission of Vietnam (SSC) discussing the project.
Efforts of the Ministry of Finance to restructure the Government bond market have turned the bonds into an important capital mobilisation channel for national economic development, stated Phan Thi Thu Hien, head of the ministry’s Finance-Banking Department.
Chinese companies have invested at least 1.4 billion ringgit (around 350 million USD) in Malaysia’s bonds and industrial production after the Pakatan Harapan coalition formed the federal government in May.
The State Treasury of Vietnam has mobilised over 65.8 trillion VND (2.89 billion USD) via Government bond (G-bond) auctions at the Hanoi Stock Exchange (HNX) since the beginning of 2018.
The Ministry of Finance will streamline regulations on Government bonds (G-bonds) issuance and simplify procedures for granting transaction codes to attract foreign investments in the country’s G-bond market, officials said.
Despite potential of expansion due to high investment demand, little capital has been mobilised from Government bonds due to interest rates below investors’ expectation.
The State Treasury of Vietnam raised a total of 1.615 trillion VND (71.77 million USD) during an auction of government bonds worth 6 trillion VND at the Hanoi Stock Exchange (HNX) on May 23.
The State Treasury of Vietnam mobilised over 44.4 trillion VND (1.95 billion USD) via Government bond (G-bond) auctions in the Hanoi Stock Exchange (HNX) since the beginning of 2018.
The Hanoi Stock Exchange and the Moscow Exchange (MOEX) signed a Memorandum of Understanding on cooperation within the framework of the 22nd Capital Market Development Forum in Moscow on April 10.
The market value of Government bonds (G-bonds) hit 1 quadrillion VND (44 billion USD) as of the end of February 2018, equivalent to 20 percent of Vietnam’s GDP in 2017.
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