Commercial banks and domestic life insurance companies are the major bond investors in Viet Nam.

Commercial banks are major bond investors. Major state-owned banks include the Vietcombank Securities Company, Vietnam Bank for Rural and Agriculture Development, Industrial and Commercial Bank of Vietnam, and Bank for Investment and Development of Viet Nam.

Domestic life insurance companies have placed 49% of their total investments in government bonds. Manulife Viet Nam Insurance Company and Prudential Viet Nam are the first two wholly-foreign-owned life insurance companies in Viet Nam. Other insurance companies include Bao Viet Insurance, Bao Minh Insurance, and Vien Dong Insurance. The Government is considering streamlining the insurance industry to mobilize additional capital.

Other institutional investors include Viet Nam’s Social Security Fund, finance companies, securities firms, and, more recently, investment funds. In March 2004, the Vietnam Fund Management Company (VFM) introduced the Vietnam Securities Investment Fund (VF1), which was the country’s first securities investment fund. VFM is a joint venture between Sacombank and Dragon Capital. About one third of VF1’s capital is invested in long-term government bonds. Other investment funds include Vinacapital and the aforementioned Dragon Capital.