The Vietnam State Treasury (VST) is expected  to raise VND400 trillion (US$17 billion) by issuing Government bonds via auctions at the Hanoi Stock Exchange (HNX) in 2023.

Government bonds remain a key source for the state budget. Photo: Viet Dung

Under the plan, the agency is set to issue bonds worth VND108 trillion ($4.6 billion) in the first quarter of this year.

This would include bonds with five to seven-year maturity of VND8 trillion (US$341.5 million), 10-year maturity of VND45 trillion (US$1.9 billion), 15-year maturity of VND45 trillion (US$1.9 billion), 20-year maturity of VND5 trillion (US$213.2 million) and 30-year maturity of VND5 trillion (US$213.2 million).

VST noted adjustments may be made to stay in line with the actual situation of the market and Gov’t expenditure needs, especially the disbursement progress of public investment fund.

In early February, the HNX conducted three auctions of government bonds, including VND500 trillion (US$21.3 million) of bonds with five-year maturities; and two auctions with 10- and 15-year maturities of VND5 trillion (US$213.2 million) each.

According to the VST, the management of   Government bond yields should be closely associated with the monetary and fiscal policies,  with a variety of maturity periods to suit the needs of investors and boost the liquidity of the Government’s bond market.

“Government bond is an important source of income for the state budget and supports the development of the capital market,” it said.

In 2022, an unfavorable business environment caused a decline in the volume of government bond transactions. Last December, the yield on government bonds was between 2.3% and 3.12% per year higher than at the beginning of 2022, depending on the maturity period.

However, in 2022, the government mobilized funds worth 203.2 trillion dong ($8.6 billion) through the auction of bonds to repay debts, with an average maturity of 12.67 years and a yield of 3.31% per year.