Vietnam should resume gov bond public offer: senior officials

The MoF should mull feasible plans to raise idle capital from the public through resuming government bond retail sale via the State Treasury System, Nguyen Duc Kien , the National Assembly ’s Vice Chairman was quoted by the newspaper as saying.

The Ministry of Finance (MoF) should mull feasible plans to raise idle capital from the public through resuming government bond retail sale via the State Treasury System, Nguyen Duc Kien , the National Assembly ’s Vice Chairman was quoted by the newspaper Dau Tu as saying.

The suggestion came out amid the fact that the MoF has to compete with local lenders to be able to raise fund through selling bonds after the SBV issued Circular 22 in late October 2010 to restrict local lenders’ gold deposit and lending activities and was expected to continue squeezing gold trading in 2011, making local lenders rush to raise dong and dollar deposits in the market.

The MoF plans to sell VND45trillion government bonds in 2011, VND11 trillion lower than that of 2010.

However, as government bond yields remain high and Consumer price index (CPI) is expected to be volatile in 2011, Nguyen Van Phuc, Vice Chairman of the NA’s Economic Committee suggested that the MoF should review its plan to sell Government bonds, even extending the period of raising capital instead of attempting to raise funds at any costs.

Currently, the MoF only sells Government bonds in large volumes to financial institutions and no longer retails them to individuals and organizations via the State Treasury system.

In January, 2011, Vietnam Government must submit a detail plan of raise funds from Government bonds and disbursing them in 2011 to the NA’s Standing Committee. – Stoxplus.com

Tags: Vietnam bonds