Vietnam to Issue International Bonds: PM Khai

Vietnam to Issue International Bonds: PM Khai

Vietnam's Prime Minister Phan Van Khai has said the country will issue bonds in the international markets in the coming time to raise funds for domestic development projects, Liberated Saigon newspaper said Monday.

In a decision on foreign debts issued last weekend, PM Khai said Vietnam should pilot issuing bonds abroad to mobilize investment capital rather than borrowing foreign commercial loans.

He said foreign commercial debts should be applied only in special cases when other sources cannot be mobilized.

In his mandate, the PM also instructed that official development assistance (ODA) credits would mainly be used to develop agriculture and rural areas, healthcare, education and training, population facilities, and science and technology, and to protect the environment.

Khai also gave the green light to large State-owned corporations such as PetroVietnam, EVN and VNPT to issue bonds abroad after their successful bond sales at home.

He also said that the government encourages enterprises to sell shares and issue stocks to foreign investors in order to attract more foreign investment. 

Vietnam plans to raise total development investment of VND300 trillion (US$19.1 billion) from all sources this year in order to secure an economic growth rate of 8.5 per cent.

To mobilize sufficient capital, the government expects to raise VND47 trillion (US$3 billion) via government bond issues at home, up 50 per cent on-year.

Liberated Saigon