Dossier for Registration as a Distributor and Payment Agent for Government of Vietnam Bonds in Accordance with the Latest 2024 Regulations
Application Dossier for Becoming a Distributor and Payment Agent for Bonds of the Government of Vietnam According to the Latest Regulations in 2024
In Clause 4, Article 1 of Decree 83/2023/ND-CP, the regulations in Clause 3, Article 17 of Decree 95/2018/ND-CP have been amended to allow the State Treasury to issue bonds directly or select distribution agents, which can be commercial banks or branches of foreign banks.
The application dossier for becoming a distributor and payment agent for bonds of the Government of Vietnam includes:
Organizations meeting the necessary conditions and wishing to become distribution agents must submit sealed dossiers directly to the State Treasury or send them via postal service to the address announced by the State Treasury. The registration dossier includes:
(1) Application form for becoming a distribution agent according to Form No. 06 in the Appendix issued with Decree 83/2023/ND-CP;
(2) Plan for organizing the distribution and payment of bonds, including essential contents: Market forecast for bonds and the ability to distribute bonds; implementation plan for the distribution and payment of bonds; proposed distribution and payment fees for bonds;
(3) Documents proving the ability to meet the conditions to become a distribution agent. These include a copy of the Business Registration Certificate, Establishment and Activity License, or other legally equivalent documents (copies issued from the original register, copies certified by the competent state agency, or non-certified copies presented together with the original for comparison); information about the operational network and infrastructure to ensure the distribution and payment of bonds according to the requirements of the State Treasury.
Application Dossier for Becoming a Distributor and Payment Agent for Bonds of the Government of Vietnam According to the Latest Regulations in 2024 (Image from the Internet)
Conditions for Becoming a Distributor and Payment Agent for Bonds of the Government of Vietnam from January 15, 2024, According to the Latest Regulations
Based on the amendments in Clause 4, Article 1 of Decree 83/2023/ND-CP, which amend Article 17 of Decree 95/2018/ND-CP, the conditions for becoming a distribution and payment agent for bonds of the Government of Vietnam are as follows:
- Being commercial banks or branches of foreign banks legally established and operating in Vietnam, capable of providing bond issuance agency services according to the Law on Credit Institutions and guidance from the State Bank of Vietnam;- Having an operational network that meets the requirements for the distribution and payment of bonds of the Government of Vietnam;- Having a plan for organizing the distribution and payment of bonds that meets the issuer's requirements for each bond issuance.
Thus, to become a distribution and payment agent for bonds of the Government of Vietnam, organizations need to meet the above conditions.
How Are Bonds of the Government of Vietnam Traded in the Domestic Market?
According to regulations in Article 19 of Decree 95/2018/ND-CP:
(1) Government bonds are traded on the stock market by order matching and/or agreement according to securities regulations and trading rules approved by the Stock Exchange.
(2) Government bonds are traded on the stock market in the following forms:
- Standard transactions;- Repurchase agreements and agreements with repurchase conditions;- Other types of transactions as per securities regulations.
(3) Repurchase agreements and agreements with repurchase conditions for government bonds as stipulated in point (b) clause 2 of Article 19 of Decree 95/2018/ND-CP are executed under the following principles:
- Maximum transaction term is not more than one year;- The buyer and seller mutually agree and sign a transaction contract covering the following essential contents: volume; interest rate (or bond price); term; collateral; risk prevention ratio; rights and responsibilities of the parties involved- dealing with collateral in cases where the parties do not fulfill payment agreements.
(4) The State Bank of Vietnam provides guidance on debt classification, risk provision for credit institutions when executing repurchase agreements and agreements with repurchase conditions for government bonds on the stock market.
(5) The Minister of Finance provides guidance on government bond transactions on the stock market as per Decree 95/2018/ND-CP and securities regulations.
Who Are the Buyers of Government Debt Instruments?
According to regulations in Article 6 of Decree 95/2018/ND-CP:
(1) Buyers of Government debt instruments issued in the domestic market include:
- Domestic and foreign organizations and individuals can buy Government debt instruments in unlimited quantities, unless otherwise provided by law;- Securities investment funds, voluntary pension funds can buy Government debt instruments through entrusting fund management organizations;- State financial funds outside the budget can buy Government debt instruments according to relevant legal regulations.
(2) Buyers of Government debt instruments issued in the international market are organizations and individuals as per the regulations of the issuing market.
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