Vietnam Treasury Raises VND12.5T from Bond Sales in H1
Vietnam’s State Treasury mobilized a total of VND12.5 trillion (US$737.3 million) from sales of government bonds in the first half of this year, fulfilling only 10 per cent of this year’s plan.
Under the target set by the Ministry of Finance, the treasury is expected to raise VND126 trillion from selling the debt.
Saving interest rates in the market have risen month by month, with current highest rate of 10.2 per cent offered to 3-year deposits. Ceiling rates offered by the treasury, meanwhile, ranged 8 per cent to 9.2 per cent.
Local commercial banks and credit institutions, which are often main buyers of bonds, needed funds for lending under the interest rate-subsidized loan program launched by the government in February.
Foreign institutional investors had also to withdraw capital from Vietnam to support their mother companies to cope with the ongoing global financial crisis.
Vietnam plans to use VND56 trillion from bond sales to fund its key projects this year. (Stock Investment)
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