Vietnamplus

More than 9.1 trillion VND (391 million USD) worth of corporate bonds were issued in the first quarter of 2019, up 222 percent year on year.

As the Vietnamese stock market has been volatile in recent months, many listed firms have given up on plans to issue shares to raise charter capital.

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.

Transparency and quality of information disclosure are the main concerns for market members, public companies and auditors to lure a larger amount of capital in 2019, business executives have said.

Prime Minister Nguyen Xuan Phuc highlighted a bright outlook for Vietnam’s economy while opening a stock trading session after the Lunar New Year holiday in Hanoi on February 12.

Issuance value of corporate bonds in Vietnam reached a five-year high of 39.45 trillion VND (1.7 billion USD) in 2018, data from Bao Viet Securities Co (BVSC) showed.

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.

Many securities companies have opted to issue corporate bonds to raise capital to finance their margin lending service, following upbeat forecasts for the market in 2018.

Outstanding debt in Vietnam’s bond market is targeted at 45 percent of total GDP in 2020 and about 65 percent of GDP in 2030, according to a recently approved roadmap for the market development.

The State Securities Commission of Vietnam (SSC) was actively implementing the corporate bond scheme to make the local corporate bond market work next year.