Vietnam Aims to Raise US$5.6 Bln from Government Bonds in 2008
The State Treasury of Vietnam plans to issue VND80 trillion-VND90 trillion (US$5 billion-US$5.6 billion) worth of government bonds in 2008 to raise fund for healthcare, education, transport and irrigation works, said general director of State Treasury Pham Sy Danh.
“This is tough tasks for the treasury this year and the move will have great impact on the equity market,” Danh noted.
The treasury will issue the bonds worth VND4 trillion-VND5 trillion for healthcare sector.
However, Danh said that the treasury is facing dilemma that it cannot offer high interest rate to mobilize capital like credit institutions, as we have to pull the interest rate down to help rein rising inflation,” he said.
Vietnam will issue government bonds at big lots via the stock market, with more investors to participate and lower interest rate, Danh noted.
In 2007, the government raised total VND50 trillion (US$3.12 billion), lower than the initial target by VND11 trillion, including VND2.67 trillion raised via the stock market, due to the lending limit of commercial banks for securities investment. (Securities Investment)
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