HA NOI — The Ha Noi Stock Exchange is promptly working out specific plans to facilitate the development of Viet Nam's bond market, of which a variety of new systems to be installed in the first half of the year, according to leaders of the exchange.
The exchange in May will allow new types transactions on treasury bonds. In June, they will likely launch electronic procurement, yield curve and bond index.
Market members have asked the Ministry of Finance, the central bank and the State Securities Commission to come up with a road map for the development of the bond market through 2020, and come up with a legal framework that would guide the issuance of treasury bills, listings and trading, as well as the introduction of new products, such as futures and sales and re-purchase agreements.
Deputy Minister of Finance Tran Xuan Ha said the ministry was working on such a framework, and would issue a decision soon so that would be able to guide the bond market through the year 2020, adding that a joint circular from the State Bank of Viet Nam dealing with the issuance of treasury bills and local government bonds would be issued this year.
The Ministry of Finance issued Circular 17/2012/TT-BTC on March 26, which dealt with the domestic bond market. According to the circular, one-year bonds offered up by the State Treasury will be issued on the 15th and the last day of each month. State treasury bills will be issued each Tuesday.
Ha said the ministry assigned the Viet Nam Bond Market Association (VBMA) the task of building an information centre concerning corporate bonds.
Trinh Hoai Giang, Vice Chairman of VBMA, said the move would help companies to issues bonds more easily, while making the bond market more transparent. The association had lessions to learn from the experience of international markets, particularly of Thailand, in building database of corporate bonds, Giang added.
For the first time, VBMA received the approval from the Ministry of Finance to develop and introduce a system of criteria for the Vietnamese bond market in accordance with the existing law. — VNS