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Close of September 21, 2023 |
Change From | |||
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Govt. Bond Yields | Latest Yield | Previous Day | Previous Week | YTD |
2 Year | 1.673 | 0.0 | ▼ 0.4 | ▼ 297.7 |
5 Year | 1.733 | ▼ 2.5 | ▼ 3.2 | ▼ 296.7 |
10 Year | 2.565 | ▲ 1.4 | ▼ 2.5 | ▼ 223.0 |
* Government bond yield changes are expressed in basis points. |
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Currencies | Latest Rate | Previous Day | Previous Week | YTD |
VND per USD | 24,303.000 | ▼ 0.1 | ▼ 0.4 | ▼ 2.8 |
VND per JPY | 164.666 | ▼ 0.6 | ▼ 0.4 | ▲ 8.6 |
* Exchange rate changes are expressed as a percentage change. |
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Interest Rates | Latest Rate | Previous Day | Previous Week | YTD |
1D VNIBOR | 0.075 | ▼ 1.5 | ▼ 2.5 | ▼ 447.5 |
3M VNIBOR | 2.800 | ▼ 17.5 | ▼ 25.0 | ▼ 540.0 |
* Interest rate changes are expressed in basis point change. |
Change From | ||||
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Policy Rates | Latest Rate (16-Jun-2023) |
Previous Rate (23-May-2023) |
YTD Rate |
|
Refinancing Rate | 4.500 | ▼ 50.0 | ▼ 150.0 | |
* Policy rate changes are expressed in basis point change. |
Agency | Rating | Outlook | Date | |
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Regional Rating Institutions | ||||
R&I | BB | stable | 2019-05-17 | |
RAM | BB3 | positive | 2019-08-27 | |
Non-Regional Rating Institutions | ||||
Fitch | BB | positive | 2022-10-28 | |
S&P | BB+ | stable | 2023-06-15 | |
NEWS HIGHLIGHTS
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BOND ISSUANCES
ASEAN+3 Bond Market Guide is a comprehensive explanation of the region''''s bond markets. It provides information such as the history, legal and regulatory framework, specific characteristics of the market, trading and transaction (including settlement systems), and other relevant information. The ASEAN+3 Bond Market Guide 2018 Viet Nam is an outcome of the strong support and kind contributions of ASEAN+3 Bond Market Forum members and experts, particularly from Viet Nam. View Report
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Viet Nam’s local currency (LCY) government bond yields declined for all tenors between 1 June and 31 August, as the State Bank of Vietnam continued its policy of easing to pump up its faltering economy. In the second quarter (Q2) of 2023, Viet Nam’s economic growth accelerated to 4.1% year-on-year from the 3.3% year-on-year growth posted in the previous quarter. Despite the faster economic growth recorded in Q2 2023, a slowdown looms as Viet Nam struggles to hit its 2023 growth target of 6.5% due to the persistent crisis in the domestic real estate industry, a slump in exports amid weak global demand, and higher lending rates that hamper business activities.
LCY bond market in Viet Nam declined 4.5% quarter-on-quarter (q-o-q) in Q2 2023 due to a contraction in the corporate bond market. Corporate bonds contracted 6.6% q-o-q due to the maturation of bonds amid low issuance volume during the quarter combined with banks’ increased activity in early redemptions of corporate bonds. Viet Nam's total issuance of LCY bonds contracted 93.4% q-o-q as issuances of government and corporate bonds declined in Q2 2023. Despite the government’s recent policy interventions, headwinds in Viet Nam’s corporate bond market persist, especially for problematic real estate companies. Based on FiinRatings report in May, bond defaults in Viet Nam increased to a total of VND128.5 trillion as of 4 May, up from VND94.4 trillion on 17 March.
On 19 July, the Hanoi Stock Exchange launched the new trading platform for privately issued bonds which enables investors to trade bonds on the stock exchange almost like a normal stock. Trading sessions of corporate bonds are scheduled separately on the stock exchange, from Monday to Friday each week lasting from 9 am to 11:30 am and from 1 pm to 2:45 pm, excluding public holidays. The new trading platform would give new impetus to the corporate bond market by improving its liquidity, transparency, and better access to capital.