What are regulations on registration, depositing and listing of government bonds in Vietnam?

What are regulations on registration, depositing and listing of government bonds in Vietnam?

Pursuant to Article 18 of the Decree 95/2018/NĐ-CP stipulating registration, depositing and listing of government bonds in Vietnam as follows:

1. Registration and depositing of government bonds:

a) Government bonds shall be registered and deposited at the VSD at the request of the State Treasury.

b) Based on the State Treasury’s notification of results of a bond issue, the VSD shall carry out procedures for registration of government bonds.

c) Based on the State Treasury’s confirmation of completion of bond settlement, the VSD shall carry out procedures for depositing of government bonds in accordance with the Law on securities.

2. Listing of government bonds:

a) Government bonds shall be registered and deposited at the VSD, listed and traded at the Stock Exchange, except foreign currency bonds.

b) Based on the VSD’s notification of bond registration and the State Treasury’s request, the Stock Exchange shall carry out procedures for listing of government bonds in accordance with the Law on securities.

What are regulations on trading of government bonds in Vietnam?

Pursuant to Article 19 of the Decree 95/2018/NĐ-CP stipulating trading of government bonds in Vietnam as follows:

1. Government bonds shall be traded on the securities market by order-matching method and/or put-through (negotiated trading) method in accordance with the Law on securities and the Stock Exchange’s regulations approved by a competent authority.

2. Government bonds shall be traded on the securities market in the following forms:

a) Outright;

b) Repo and sell/buy back;

c) Other trading forms as prescribed by the Law on securities.

3. Repo and sell/buy back transactions of government bonds set forth in Point b Clause 2 of this Article are conducted by applying the following principles:

a) Term of a repo or sell/buy back transaction shall not exceed 01 year;

b) The buyer and seller shall themselves carry out a negotiation and enter into a repurchase agreement or sell and buy back agreement, which includes the following contents: quantity; interest rate (or bond price); term; collateral; hedge ratio; rights and obligations of contractual parties; disposal of collateral in case of either party’s failure to make the previously agreed settlement.

4. The SBV shall provide guidance on classification of debts and credit risk provisions for credit institutions that enter into repos and sell/buy back transactions of government bonds on the securities market.

5. The Minister of Finance shall provide guidance on trading of government bonds on securities market in accordance with regulations herein and the Law on securities.

What are requirements for issuing government bonds to ensure market liquidity in Vietnam?

Pursuant to Clause 1 Article 20 of the Decree 95/2018/NĐ-CP stipulating requirements for issuing government bonds to ensure market liquidity in Vietnam as follows:

1. Requirements:

a) Government bonds are issued to ensure the market liquidity when a market maker gives a firm quotation under regulations in Point c Clause 2 Article 27 herein but fails to provide enough government bonds for trading.

b) The quantity of government bonds issued for ensuring the market liquidity at all times must not exceed the annual limit on government bonds approved by a competent authority.

c) The market maker is required to provide a minimum margin to the State Treasury as prescribed in Clause 2 of this Article.

Best regards!