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Law on Securities in 2019. Together with the
Law on Enterprises 2015 and related laws, the
revised Law on Securities will create conditions
for enterprises to raise capital by issuing shares
and bonds, creating a legal framework for new
products on the market, improving quality and
efficiency of the inspection and supervision
over the securities market of the management
agencies, ensuring the market development in
a sustainable and transparent manner.
The new legal framework, together with a
new schyncronized system of technology in
two stock exchanges and the Vietnam Securities
Depository Center are expected to be applied
from 2019, along with recent innovation such as
the transfer of Government bond transactions
from commercial banks to the State Bank,
providing online transaction codes to foreign
investors, removing restrictions on ownership
of investors in the common business sector,
strengthening coporate governance according
to the Government Decree 71/2017/ND-CP
dated June 6th 2017 will create a more open
and transparent investment environment, and
more equitable to both domestic and foreign
investors.
Forthly,
the solutions to attract investment,
upgrade the stock market of Vietnam from
the marginal market class to emerging market
Paper Corporation, Mobifone, Vietnam Coffee
Corporation, Telecommunications Corporation,
Chemical Corporation, Coal and Mineral
Corporation and many other big companies
in the sectors of jewelry, real estate, electricity
generation... From now to the end of the year,
the equitization will be accelerated in some
enterprises such as PV Oil, PV Power, Vietnam
Tobacco Corporation, the sale of shares will
be strengthened in Sabeco and Vinamilk. Thus,
in the next 1-2 years, hundreds of SOEs will
be equitized and listed on the stock market.
The stock market will grow in size and create
great opportunities for domestic and foreign
investors.
Secondly,
many new products introducing
to the market will increase the investment
opportunities and attractiveness. The warranty
certificate is expected to be available at the end
of this year or in early 2018. In the derivative
market, in addition to the VN30 futures
contracts, future contracts of Government
bonds are expected to be traded in 2018. Other
derivative products are being researched to put
into place in 2019-2020 to meet the needs of
investment, preventing risks for investors.
Thirdly,
the legal framework for capital
market will be finalized in the coming time; the
Ministry of Finance will complete the revised
TABLE 3: VIETNAM’S BOND MARKET SIZE/SCALE IN THE PERIOD OF 2010-2017 (%)
No.
Items (% GDP)
2010 2011 2012 2013 2014 2015 2016 As of Nov. of 2017
(% GDP of 2016)
I
Issuance revenues
7,28 4,96 7,01
7,35 7,70 8,47
9,60
6,70
1
Government Bonds
3,45 3,17 4,36
4,90 6,24 6,11
6,69
4,42
2
Government
guaranteed Bonds
2,31 1,79 1,62
1,28 0,70 1,14
0,74
0,49
3 Local government bonds
0,00 0,00 0,15
0,23 2,42 0,20
0,08
0,00
4
Corporate bonds
1,51 0,28 0,88
0,93 0,58 1,02
2,09
1,79
II
Outstanding debt
20,60 17,96 16,59 19,00 21,73 24,14 36,9
36,49
1
Government Bonds
8,09 8,16 9,52 11,26 13,84 16,19 27,33
27,13
2
Government
guaranteed Bonds
5,57 5,45 4,85
4,63 4,30 3,85
3,68
3,25
3 Local government bonds
0,37 0,24 0,26
0,46 0,60 0,69
0,63
0,49
4
Corporate bonds
6,11 4,11 1,95
2,65 2,50 3,40
5,27
5,61
Source: Department of Finance for Banks and Financial Institutions, Ministry of Finance
