34
depositary and listing of bonds and
establishment of a system for disclosure on
issuance and trading of corporate bonds.
In addition to these measures, renewed
coordination between fiscal and monetary
policies is needed to balance and link the
operations among the monetary, credit and
bond markets; surveillance and monitoring of
bond and capital markets will be enhanced to
ensure the safe, transparent operation of the
bond market to protect market stakeholders’
legitimate rights.
In the future, with the targets, orientations
and the implementation of concrete measures
in the Decision No. 1191/QĐ-TTg, Vietnam
bond market will develop strongly not only
in size, but also in liquidity and the level of
transparency and disclosure, presenting an
attractive profitable opportunity for domestic
and foreign investors.
References:
1. Goverment (2015), Decree No. 60/2015/ND-CP dated June 26th
2015 amending, supplementing several articles of the Government’s
Decree No. 58/2012/NĐ-CP dated July 20th 2012 on providing
specific provisions for the implementation of certain articles of the
law on securities and the law on amending and supplementing a
number of articles of The Law on Securities;
2. Ministry of Finance (2015), Circular No. 123/2015/TT-BTC dated
August 19th 2015 providing guidance on foreign investment
activities on Vietnam’s securities market;
3. The State Securities Committee (2017); The report of Vietnam’s
securities market;
4. Source fromwebsites: mof.gov.vn, ssc.gov.vn, tinnhanhchungkhoan.
vn, tapchitaichinh.vn...
balance of corporate bonds achieved 7% GDP in
2020 and about 20% GDP in 2030.
In order to realize the above-mentioned
targets, followingmeasureswill be implemented:
Firstly,
the issuance of bonds will continue to
be through open bidding with issuance schedule
made public with introduction of new bond
products in the market. The bond derivative
market will be established and operational and
the Government bond profile will be further
restructured to ensure sustainability. With
regards to corporate bond, new regulations
on corporate bond issuance will be issued to
facilitate fund raising by corporate sector while
ensure the transparency and public disclosure
of issuances to protect investors’ benefit.
Secondly,
establishment of market maker
system and secondary market for corporate
bonds; a centralized system of public disclosure
for corporate bond will be stabilized.
Thirdly,
the following structures will be
implemented, i.e.: (i) Establishment and
development of voluntary Pension funds;
(ii) Promotion of the professional investment
operations by the Social Security; (iii) Review
and revision of investment policies of major
investors (commercial banks, investment funds,
insurance companies); (iv) Revision and addition
to investment incentives such as fees and taxes,
investment processes and procedures to facilitate
investor participation in the bond market.
Fourthly,
further restructuring of securities
companies to set up an appropriate system of
healthy financial intermediaries; modernization
of the IT system for bond auction, registration,
TABLE 5: CAPITALIZATION OF SECURITIES MARKET (AS OF SEPTEMBER 2017) (BILLION VND)
Market
Capitalization
HOSE
HNX
UPCoM
Government/
Corporate
bond market
Total
% GDP
(%)
Increase/Decrease
Compared
to the last
month
Compared
to the
last year
31/12/2015
1.146.925 212.641 61.033
753.451
2.174.050
30/09/2016
1.390.266 156.591 117.682
907.832
2.572.371 60,04
2,20
18,30
31/12/2016
1.491.778 150.521 306.629
931.340
2.880.268 68,7
6,80
32,50
30/06/2017
1.902.525 183.212 437.880
990.225
3.513.842 83,08
4,64
22,00
30/11/2017
2.520.482 221.323 588.312
1.003.815
4.333.932 96,25
11,93
50,47
Source: State Securities Committee
