U.S. to Support Vietnam in Bonds Management, Issue

Representative of the U.S. Department of Treasury Keith J.Krechak said Tuesday that the U.S. department would provide Vietnam with technical assistance on managing and issuing government bonds, the Securities Investment newspaper reported.

 

The U.S. Department of Treasury will also support the State Securities Commission (SSC) to design the secondary market with the participation of market founders, Keith J.Krechak said in a meeting with Nguyen Ngoc Canh, Head of the SSC&rsquos International Cooperation Department.

 

Vietnam is right in cutting down public expitures as its economy has seen confronted disadvantaged conditions over the past time such as soaring inflation, and Vietnam dong depreciation, which have affected the stock market, he noted.

 

The government of Vietnam has decided to cut 10% of public investment and VND10 trillion, or 25% of G-bonds sources this year in a bid to tame inflation.

 

SSC said it targets to build a secondary bond market with three components: government bond, municipal bond, and corporate bond markets.

 

The total value of government bonds in circulation on the market is now estimated at about $15 billion, of which foreign investors hold $3 billion, the Vietnam Economic Times said. (Securities Investment)