Vietnam to Issue US$1Bln Gov't Bonds in 2006

The Ministry of Finance will issue between VND15 trillion (US$950 million) and VND18 trillion (US$1.14 billion) worth of government bonds in 2006, according to a resolution of the National Assembly.

 

The capital mobilized from the bond issue will be invested in national key projects on transport and irrigation, such as resettlement for Son La Hydropower Plant, construction of roads for patrol and main roads to communes.

 

The country has issued VND60 trillion (US$3.8 billion) worth of government bonds in 2001-2005 period, of which VND50 trillion (US$3.2 billion) was sold via the State Treasury, VND8 trillion (US$506 million) via the Development Assistance Fund, and US$750 of sovereign bonds in the international market for the first time.

 

Besides, localities including Ho Chi Minh City, Hanoi, and Dong Nai have also mobilized VND7 trillion (US$443 million) from issuing municipal bonds.

 

Recently, Vietnam has also raked in some VND1.35 trillion (US$85.4 million) from the third government bond issue to finance key irrigation and infrastructure projects. The issue, lasting from August to September, was originally targeted to raise VND1.5 trillion (US$95 million).

 

By the end of September, the Government had allocated VND17.33 trillion (US$1.1 billion) sourced from bond sales in the 2003-2005 period to development projects. Over VND11.3 trillion (US$715 million) has been disbursed so far, representing nearly 70 per cent of the plan set for the three years.

 

In related news, the Ho Chi Minh City has just announced to sell VND700 billion of municipal bonds to complete the targeted VND2 trillion bond issuance this year. The next bonds will be issued with denominations of five-year, ten-year, and 15-year terms with corresponding interest rates of 9.1 per cent, 9.3 per cent and 9.6 per cent.
Liberated Saigon