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FINANCIAL INSTITUTIONS AND

MARKETS

VIETNAM BOND
MARKETS
Team 11
Overvi
ew
Types Bonds Issued by Public
Entities
of
bonds Bonds Issued by Private
Entities (Corporate
Bond)

Money Market
Instruments
Overview the bond markets in
Vietnam
Most bonds are traded in:
The Over-the-counter (OTC) Market
The Stock Exchange Market
Government
Hanoi Stock bonds
Exchange
(HNX) Corporate
Hochiminh
bonds
Stock Corporate
Exchange bonds
(HOSE)

The Bond Markets Team 11


Types of bonds
Long-term instruments
government bonds
Bonds Issued by government-guaranteed bonds
Public Entities municipal bonds

Short-term instruments
Treasury bills

The Bond Markets Team 11


Types of bonds
Bonds Issued by Public
Entities
Government-
Government Bonds Municipal bonds
Guaranteed Bonds

Issued by the MOF Issued by Issuance is subject


through the State authorized entities to strict monitoring
Treasury By bond biding, and approval by
By auction and underwriting is not the central
underwriting allowed government.
Proceeds used to Proceeds used to Proceeds used to
finance public mobilize capital for finance specific
service-related investment projects projects
projects as appointed by the Main issuers: Ho
Prime Minister Chi Minh City,
Main issuers: VN Hanoi, and Dong
Development Bank Nai province
Average size: $100
million
The Bond Markets Team 11
Types of bonds
Bonds Issued by Public
Entities

VietNam
Municipal
Bond
The Bond Markets Team 11
Types of bonds
Corporate Bonds
joint-stock companies
Who are State-owned
eligible to Enterprises being
issue restructured into
bonds? limited liability
companies
foreign-invested
companies operating
in Viet Nam
(Under the Decree 52/2006)

The Bond Markets Team 11


Types of bonds
Corporate Bonds

- Face value:
Corporate bonds listed on HNX and HOSE :
VND100,000
Unlisted corporate bonds, especially those of
several large SOEs: VND1billion
(Under the Decree 52/2006)
- Maturity: 5 years or more

- Grown rapidly since 2009 due to improvement


in the legal framework.
The Bond Markets Team 11
Types of bonds
Money Market
Instruments
State Bank of Repos of
Treasury Bills
Vietnam Bills Government Bonds

Issued by the State The only one was Introduced in 2003


Treasury sold on 17 March Accepted as
Maturity: less than 2008 collateral for repos
1 year (normally Banks were between
13weeks, 26 required to buy commercial banks
weeks, and 52 VND20.3 trillion and State Bank
weeks) worth of bills Trading on HNXs
Face value: To withdraw cash bond system,
100,000VND from economy and mainly via the put-
To temporarily control liquidity through method.
finance the states
budget deficit or
help control
monetary policy. The Bond Markets Team 11
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YOUR ATTENTION!