The development of Vietnam bond market

Abstract

As a part of the finance market, Vietnam bond market has been growing fairly rapidly in the past few years, which creates a great contribution to the socio-economic development progress. It has been providing a huge capital for construction of infrastructure, investment for development and programs of implementing key credit policies of the government. In 2001, the market’s scope accounted just 2,82% of GDP, but by the end of 2012, it had been increased up to 21,6% of GDP. However, the Vietnam bond market on overall still remains some shortcomings such as: scope and scale of the market is still limited with not high liquidity; market structure has not been completed; investor network (especially the long term investment institution) is slender; service infrastructure for the market has not been well developed. This writing analyses status of Vietnam bond market, and then proposes solutions for developing the market which aims to attract capital for development investment