On May 9th, 2014, Mrs. Dao Dung Anh, Deputy General Director of Vietnam Development Bank and Dr. Michael Krakowski, Chief Technical Advisor and program Director, GIZ’s Representative have signed Action program to be implemented to conduct within the bond exchange program, a technical assistance activity from GIZ to Vietnamese partners to develop capital market.

The signed action program (program) aims to provide a mechanism of cooperation and to create favorable conditions to develop and assist technical exchanges on bond exchanges and big lots issuance of government guaranteed bonds by VDB as well as to meet liquidity requirements of Vietnam bond market.

In spite of to challenges and difficulties in Vietnam economy, the bond market has made important movements in order to improve its quality. With VDB’s incentives such as bond exchanges, big lots of bonds issuance, Government guaranteed bonds issued by VDB will be high quality merchandise, responding to the market demand, contributing to positive changes in bond auctions in the future.

For 2014 plan, VDB plans to issue at least VND 40 trillion (equivalent to USD 1.9 billion) worth of Government bond value with priorities to those having  2 years, 3 years, 5 years and 10 years maturities and to attract more domestic and foreign investors. As the first quarter of 2014, VDB has sold out VND 10 trillion of bond value, 16.2% higher than the same period of the last year.

Bond market in Vietnam has made remarkable improvements for the last 10 years. The market size has increased from 2.82% of GDP in 2001 to 15.6% in the middle of 2013, of which Government guaranteed bond represents 15% of GDP.