The liquidity of the Vietnamese bonds market has been much improved compared to two months ago as banks, insurance companies and investment funds have raised their demand for the debt, the state media reported.
The HSBC's report on equity market showed that the bond coupon has fallen to 20 per cent-17 per cent per annum from the peak of 21 per cent-22 per cent, indicating the rising demand.
The results of government bond auctions recently also prove the market's recovery.
The auction August 8 remarked the turning point of bond transactions. The state treasury sold out all VND500 billion of two-year bonds. It also sold VND770 billion out of total VND1.5 trillion of two and three-year bonds offered August 22.
The Vietnam Development Bank also succeeded in selling VND117 billion of 10-year bonds at annual coupon of 15 per cent August 10.
Meanwhile, many did not liked to buy g-bonds between March and July.
"The recovery is attributed to the investors' improved confidence after economic indicators showed the country's economy has been stabilized. The redundant source of fund in almost commercial banks is also another reason for the higher bond demand,” said economic analyst Nguyen Minh Phong
Nguyen Son, Head of the Market Development Department under the State Securities Commission (SSC), said g-bonds are very attractive securities for investors, especially foreign investors.
Phong said Vietnam's bonds are attractive for two reasons: high annual bond yield of 7 per cent-9 per cent, and the predicted appreciation of Vietnam dong in the future.
Currently, Vietnam's g-bonds listed on the stock market account for only 12 per cent of its GDP, Phong said, noting that the figure is rather low.
The Hanoi Securities Trading Center is preparing to put a dedicated bond market into operation soon, apart from the stock market. (VTC News)
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