This result was partly due to a resolution approved by the National Assembly which allowed 3-year-maturity bonds to be issued.
As investors were not keen on five year maturities, only 60% of 5-year bonds up for sale had gone by the beginning of November, 2015. The new National Assembly resolution which allows a three year maturity period was approved and over 4 billion US dollars was raised in December, 2015.
Over 11.4 billion USD was raised through bond issuances last year, meeting the target set by the National Assembly. With a budget deficit of up to 5% of GDP, the funds helped the budget.
The short and medium-term raising of capital however causes pressure on public debt. In the future, it is necessary to attract long term investment from foreign funds into Vietnamese market. This will help create the foundation for the development of the capital and the stock markets.
