IFC Signs MoU to Help Develop Vietnam Bond Market

The World Bank-managed International Finance Company (IFC) signed a memorandum of understanding (MoU) with the Vietnam Bond Market Association (VBMA) to introduce international best practices to help develop Vietnam’s bond market and to enhance the capacity of raising funds for infrastructure projects and other pressing needs.

 

The agreement was reached when the VBMA was launched on August 14, with over 60 members, mostly foreign and local banks and securities companies, state media reported Monday.

 

The IFC will support the VBMA in developing a set of market practices, a code of conduct and ethics and training courses for market members between 2009 and 2012.

 

“Further developing Vietnam’s bond market is a key step to strengthen the country’s financial market,” said Simon Andrews, the IFC’s Regional Manager of Vietnam, Cambodia, Laos and Thailand.

 

The bond market will be an important capital channel for infrastructure projects, housing finance, social and healthcare projects as Vietnam continues to grow and cope with challenges of urbanization and employment, Andrews said.

 

The two sides selected the Thai Bond Market Association as a consultant during the process of creating a market code of conduct for the bond market of Vietnam.

 

The bond market accounts for only 14.2% of Vietnam’s GDP. (Investment, VNA)