State working on global bond issues

PUBLISHED : Monday, 19 December, 1994, 12:00am
UPDATED : Monday, 19 December, 1994, 12:00am

VIETNAM'S state-owned enterprises could be issuing bonds internationally by the end of next year to develop much-needed expertise for the launch of the country's stock market.

Vice-Minister of Finance Pham Van Trong said plans were being finalised and high-level approval sought for trial issues.

'We realise the stock market is something very new for us and such a move will be good experience while providing capital,' Mr Trong said.

Banks, cement factories and possibly the state's oil monopoly, PetroVietnam, are tipped to be among the first contenders.

The ministry has been given the task to form a stock market along with the State Bank of Vietnam, but the Prime Minister's Office has yet to decide which agency will take final regulatory control.

With little uniform auditing, Vietnam's domestic bond market is being closely watched as an example of how the country will cope with a stock market, expected to be established in 1996.

In the past two years, Vietnam has raised about US$800 million, mainly through Treasury bills and bank bonds.

Vietnam is aiming to mobilise $50 billion in capital by the end of the century to meet its other key target - doubling the size of the 1990 economy.

Bonds are likely to play a key role in this drive, given that foreign investment has so far totalled only $10 billion.