Vietnam Stock Exchange to Launch Dedicated Bond Market in May
The Hanoi Stock Exchange (HSE), Vietnam’s smaller securities bourse, expects to open up a separate bond market late May this year after receiving approval from the State Securities Commission (SSC), said HSE Director Tran Van Dung.
The exchange will finish the government bond trading system April 17 before submitting to the SSC, Dung said.
The establishment of a dedicated bond market, along with the inauguration of equity market for unlisted shares (Upcom) expected in June, will help strengthen the state management on local equity, and increase their liquidity.
The International Finance Corporation (IFC), a member of the World Bank, has earlier pledged to help develop Vietnam’s capital market, especially the bond market to tap more local funding.
Currently, 15 securities firms account for 99 per cent of the market share in the bond secondary market, and 15 commercial banks made up 74 per cent market share in the bond primary market.
Launched in 2005, the Vietnamese stock exchange, HSE, now has the listings of 533 kinds of g-bonds with a total value of VND167.1 trillion (US$9.85 billion), or more than 12 per cent of the country’s GDP.
Since 2005, the bourse has held over 100 bond auctions, helping raise VND30 trillion for the state budget. (Securities Investment)
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