30
market. Specifically, in 11 months of 2017,
the outstanding balanceincreased about 9.8%
compared to that of the end 2016, of which,
Government bond accounts increased10.2%
compared to that of the end 2016, accounting for
27,13% GDPwhile corporate bonds increased by
10% compared to that of the end 2016.The key
feature in the market is the full representation
in benchmark maturities of Government bonds
from 3, 5, 7, 10, 15, 20 and 30 years. Besides the
more traditional fixed income products, the
market now witnessed the issuance of more
flexible coupon payment products, redemption
and reopening of bond issuance at bidding
session, and bond swaps to enhance market
liquidity. Corporate bond issuance focused
mostly in the 3-5 year maturity to match the
corporate investment cycle.
Secondly,
liquidity in the secondary market
has been greatly improved with additional
trading options for investors.
Liquidity on the secondary market has
been improved fast with volume of trading
in Government bonds increasing through the
years. In the first 11 months of 2017, the traded
volume of Government bond averaged VND
8,836 billion per session, and increase of 41%
compared to that of 2016 average (VND 6,285
billion per session). Trading in the secondary
markets are now conducted in both “Spots”
and “Futures”. Information on bond trading
is also readily available for investors. In order
to further support investors in their risk
assessment in secondary trading, the Ministry
of Finance has submitted to the Government
for issuance of relevant legal instruments for
number of investors’ accounts continued to
increase to over 1.8 million accounts, an increase
of 9% compared to 2016. Particularly, Vietnam
stock market continues to be an attractive
destination for foreign investors. The portfolio
value of foreign investors remained high, rising
by 47.4% compared to 2016. This also reflects
the recovery of the Vietnamese stock market
and the positive signals stemming from the
reform policies of the Government.
Strong growth in size
and improved market structure
In recent years, the Vietnam bond market has
witnessed significant development and step by
step, become an effective fund raising venue for
longer term capital for development investment
by the Government and firms. Between 2011-
2016, the Ministry of Finance focused its efforts
on the completion of the legal framework
for the market including issuance, trading,
operations of market intermediaries and market
service providers and market surveillance and
monitoring. Thus, in this period, the market
grew by 24% annually, laying a solid foundation
for investors’ confidence. Concrete market
developments are reflected in the following
areas:
Firstly,
Vietnam bond market maintained
a sustained strong growth with diversified
products and enhanced quality to meet the ever
increasing demand in the market.
The strong growth in outstanding balance
and the number of products on the Vietnam
bond market in the the first 11 months of 2017
reflects most vividly the development of the
TABLE 1: LISTED AND REGISTERED SECURITIES VOLUME (AS OF SEPTEMBER 2017)
UNIT OF CALCULATION: BILLIONS OF SECURITIES
Time
Listed
Stock
Listed
Government
Bond
UPCoM ETF
Fund
Certificate
Bond on
HoSE Total
Increase/Decrease
Compared
to the last
month
Compared to
the last year
31/12/2015
53,08
7,53
5,06 0,038
0,086 65,8
30/09/2016
57,28
9,08
8,7
0,05
0,089 75,19
2,10%
14,30%
31/12/2016
60,38
9,3
14,82 0,041
0,015
0,095 84,65
5,90%
28,60%
30/06/2017
64,67
9,8
20,06 0,06
0,02
0,1 94,71
2,30%
11,88%
30/11/2017
71,16
10,0
23,75 0,136
0,02
0,145 105,24
3,18
24,33
Source: State Securities Committee
