The Internet site for online transactions of Government bonds will be put into use soon, marking a big change on the Vietnamese bond market, the Saigon Times Daily has reported.
Thi Hoang Lan, vice chairperson and deputy CEO of the Hanoi Stock
Exchange (HNX), was quoted as saying that the northern bourse will
operate the site with many products and information for investors. This
online transaction channel is being test-run.
More products and new transaction tools on both primary and secondary markets will be developed and offered in the coming time, she said, adding HNX will also launch the Bond Index this month.
Together with the yield curve, the bond index is a market indicator assisting investors in calculating bond prices and forecasting investment trends, which is expected to help boost participation of members and investors in Government bond transactions.
Derivatives like zero-coupon bond, when-issued, sell/buy repo, borrowing/lending repo and cross-currency repo have been studied, which have attracted much attention from members and investors.
The Government bond transaction system on HNX will be connected with the information system of Bloomberg, making it easier for investors to search for information and make transactions on only one screen, and facilitating access of foreign investors to the Vietnamese bond market.
Compared to bond markets in the region, Vietnam’s government bond market is of small scale and not attractive. Products are not diverse and the market structure has not been completed.
Vietnam has yet to have either a derivative bond market or a connection between the Government bond market and open-market operations and the inter-bank market.
To make Vietnam’s Government bond market as developed as other markets in the region in the next 5-10 years, Lan said measures to stimulate the bond market such as diversifying types of bonds, offering bonds with longer terms and announcing bond issuance plans will be enhanced.
In addition, favorable conditions for insurance and financial companies and pension funds to join the market will be created. HNX encourages the participation of foreign investors by adjusting tax policies and bond transaction fees as well as offering hedging mechanisms for those investors.
Viet nam plus