The issuance of Government bonds is one of the important channels to ensure capital sources for socio-economic development requirements. - Illustrative image (Photo: VNA)
HCM City (VNA)
– Experts and economists
have proposed to expand the
issuance of Government bonds to the international market, saying
that this will help increase oppotunities to mobilise investment flows for socio-economic development projects of Vietnam
in the time to come.
Addressing a workshop in Ho Chi Minh City on April 27, head
of the Prime Minister's economic
advisory group Nguyen Duc
Kien highlighted the need to attract investment sources, especially for infrastructure and socio-economic development.
Vietnam has great demand for capital to develop key infrastructure projects, especially those serving transport and information
technology, they said.
They pointed out a number of projects that will need great investment sums, including a national power planning project in
2021-2030 and a draft plan on road traffic network development in 2021-2030,
with a vision to 2050, which require about 13 billion USD and 2.5 billion UDS
per year, respectively.
If only relying on the domestic capital market, it will be difficult to meet
the large capital needs for investment in economic infrastructure, which
requires medium and long-term capital, they added.
According to Kien, Vietnam is considered a reputable partner on the international financial market as it has always paid debts on time.
Notably, interest rates are currently kept low in international capital
markets, making it easier for the Vietnamese Government to issue bonds with
lower nominal interest rates, save costs and reduce pressure on debt payment.
Since 2005, Vietnam has issued Government bonds on the international capital market for three times with
positive results. This has helped strategy makers to learn from experience and
The group said the Government should consider a plan to build a global
medium-term bond issuance programme, which will allow the Government to issue
flexibly international bonds in different currencies and volumes at different times.
underlined the need to build a mechanism serving the effective using and
management of capital sources after the issuance.
Financial expert Tran Ngoc Tho said the issuance of Government bonds is one of the important channels to ensure capital sources for socio-economic development requirements.
However, he also warned about risks related to the national currency security, stressing
that it is necessary to study and prepare scenarios to deal with risks if any./.