VIETNAM BOND MARKET ASSOCIATION
VIETNAM BOND MARKET REPORT
June 2015
 In June, the State Treasury raised
VND7,381 billion out of the
VND17,000 billion offered. The
winning/offering ratio rose to
43.4%. The total value of
Government bond and Treasury bill
issued in the first half of 2015 was
VND73,305 billion.
 In July 2015, the total Government
bond & Treasury bill interest and
principal payment will be VND
5,785 billion
 In the corporate bond primary market, Hung Vuong Corporation and Masan Consumer
Holdings successfully issued corporate bond worth VND300 billion and VNd9000 billion,
respectively.
 In the secondary market, the total bond trading volume in June was VND86,298 billion, a
5.7% decrease compared to May. Outright trading volume was VND56,831 billion,
accounting for 65.85% of total trading. Government bonds trading volume was VND71,931
billion, accounting for 83.36% of total trading.
 As of the end of June, the market share of Government bonds in total bond outstanding
value dropped slightly to 76.68% (from 77.53% last month) or VND495,449 billion, comes
next was Government-guaranteed bond with 20.19% or VND130,432 billion and the
remaining 3.14% is municipal bond.
 Data from the VBMA Market Makers Chatroom indicated that Government bond yield fixing
at the end of June increased across all tenors compared to May. Specifically: +14 bps with 1year bond, +19.6 bps in 2-year bond, 28.8 bps in 3-year bond, +48.1 bps in 5-year bond,
+74.6 bps in 7-year bond and +50.5 bps in 10-year bond.
VIETNAM BOND MARKET REPORT
June-2015
PRIMARY MARKET
The Ministry of Finance
No.100/2015/TT-BTC
issued the Circular No.99/2015/TT-BTC and Circular
On June 29, the Ministry of Finance issued the Circular No.99/2015/TT-BTC on guiding
the issuance of Government-guaranteed bonds, replacing the Circular No.34/2012/TT-BTC
and Circular No.167/2013/TT-BTC. On the same day, the Ministry of Finance issued the
Circular No.100/2015/TT-BTC on guiding the issuance of municipal bonds, replacing the
Circular No.81/2012/TT-BTC.
The State Treasury will issue 20-year Government bond for the first time.
On June 30, the State Treasury issued the Announcement No. 1592/TB-KBNN on the
issuing of 20-year Government bond by private placement. The bond will be issued directly
from the State Treasury to insurance companies operating in Vietnam from July 29 to
December 31, 2015. The total issuance value will be about VND6,000 – VND7,000 billion. The
interest payment on the bond will be made once a year, the principal will be repaid at
maturity.
The State Treasury raised VND7,381 billion via bond auctions. The winning/offering ratio
rose to 43.4%.
In June, there were 8 government bond auctions in the primary market and the State
Treasury raised VND7,381 billion out of the VND17,000 billion offered. The offering/winning
ratio rose to 43.4% from 18.4% last month. The winning interest rate increased with 5 and
15-year bond, all 10-year bond auctions failed.
Table 1: Government bond and bill auction results in June 2015:
Tenors
Offering
volume
(VND bio)
Winning
volume
(VND bio)
Winning
interest
rate (%)
Up/Down
compared to
the previous
auction
TD15302
90
TD15202
15 Years
1,000
340
7.62
0
5 Years
1,500
1,500
6.4
+3
66
TD15202
62
TD15252
5 Years
1,000
1,000
6.37
-3
10 Years
500
0
15 Years
1,500
240
7.62
-2
5 Years
1,500
275
6.4
0
5 Years
1,000
220
6.4
+20
10 Years
500
0
5 Years
1,000
500
6.2
+20
15 Years
1,500
1,241
7.64
+4
5 Years
1,000
100
6
+55
10 Years
500
100
6.6
+10
15 Years
1,500
1,500
7.6
0
No.
Date of
bidding
Bond
code
1
26-Jun-2015
2
26-Jun-2015
3
23-Jun-2015
4
23-Jun-2015
5
18-Jun-2015
6
18-Jun-2015
7
16-Jun-2015
8
16-Jun-2015
9
11-Jun-2015
10
11-Jun-2015
11
09-Jun-2015
12
09-Jun-2015
13
04-Jun-2015
78
TD15302
88
TD15202
64
TD15202
62
TD15252
78
TD15202
64
TD15302
87
TD15202
62
TD15252
78
TD15302
87
Vi etna m B ond Ma rket As s oci a ti on
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VIETNAM BOND MARKET REPORT
June-2015
14
04-Jun-2015
15
02-Jun-2015
16
02-Jun-2015
17
29-Jun-2015
18
29-Jun-2015
19
29-Jun-2015
20
22-Jun-2015
21
22-Jun-2015
22
22-Jun-2015
23
15-Jun-2015
24
15-Jun-2015
25
15-Jun-2015
26
08-Jun-2015
27
08-Jun-2015
28
08-Jun-2015
29
01-Jun-2015
30
01-Jun-2015
31
01-Jun-2015
TD15202
64
TD15202
5 Years
1,000
40
5.45
0
+5
5 Years
1,000
225
5.45
62
TD15252
78
BVBS150
10 Years
1,000
100
6.5
3 Years
1,000
0
34
BVBS150
74
BVBS151
15 Years
300
0
5 Years
200
0
54
BVBS151
53
BVBS150
15 Years
300
0
3 Years
1,000
0
33
BVBS150
73
BVBS151
5 Years
200
0
15 Years
300
0
52
BVBS150
32
BVBS150
3 Years
1,000
0
5 Years
200
0
72
BVBS151
51
BVBS150
15 Years
300
0
3 Years
500
500
31
BVBS150
71
BVBS151
5 Years
200
0
15 Years
200
0
3 Years
400
400
5 Years
400
0
50
BVBS150
30
BVBS150
70
6
+3
5.97
-3
Source: HNX, VBMA
Figure 1: Offering and winning volume of Government bond in the last 13 months .
40,000
120.0%
35,000
30,000
100.0%
100.0%
95.8%
91.6% 91.9%
84.8%
83.3%
80.0%
25,000
72.3%
60.6%
20,000
60.0%
51.2%
15,000
43.4%
40.0%
41.6%
37.1%
10,000
20.0%
18.4%
5,000
-
0.0%
June
July
Aug
Sept
Winning volume
Oct
Nov
Dec
Jan
Offering volume
Feb March April
May
June
Winning/Offering ratio
Source: HNX, VBMA
Vi etna m B ond Ma rket As s oci a ti on
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VIETNAM BOND MARKET REPORT
June-2015
Table 2: Bond auctions result in June, classified by tenors .
Tenors
Offering amount
(VND bio)
Winning amount
(VND bio)
Winning/Offering ratio
5 Years
10 Years
9,000
2,500
3,860
200
42.9%
8.0%
15 Years
5,500
3,321
60.4%
Total
17,000
7,381
43.4%
Source: HNX, VBMA
There were also 3 Treasury bill auctions in June with the total offering volume of VND19,000
billion and the total winning volume of VND13,130 billion. This is the first Treasury bill auctions since
August 2014.
Table 3: Treasury bill auction result in June 2015:
Winning
volume
(VND bio)
Winning
interest
rate (%)
Up(+)/Down() compared
to the
previous
auction
No.
Date of bid
opening
Bill code
Tenors
(weeks)
Offering
volume
(VND bio)
1
29-Jun-2015
TPKB15023
26
3,000
3,000
4.6
-10
2
29-Jun-2015
TPKB15004
13
4,000
1,380
4.1
0
3
22-Jun-2015
TPKB15022
26
3,000
3,000
4.7
-10
4
22-Jun-2015
TPKB15003
13
3,000
2,300
4.1
+2
5
15-Jun-2015
TPKB15002
26
3,000
2,200
4.8
6
15-Jun-2015
TPKB15001
13
3,000
1,250
4.08
19,000
13,130
Total
Source: HNX, VBMA
Government and Treasury bill auctions in the first 6 months of 2015
The total value of Government bond and Treasury bill issued in the first half of 2015
was VND73,305 billion.
Table 4: Government and Treasury bill issuance in the first half of 2015 (VND bio)
Plan for
the whole
year
Plan for
the first 6
months
<1 year
-
5 year
180,000
105,000
10 year
50,000
15 year
Total
Tenor
Offering value in
the first 6 months
Winning value in the first 6 months
Value
Compared to
6mths plan
Compared to
whole-year plan
19,000
13,130
-
-
77,000
46,090
43.9%
25.6%
25,000
22,000
6,370
25.5%
12.7%
20,000
20,000
31,500
22,846
114.2%
114.2%
250,000
150,000
130,500
75,305
50.2%
30.1%
Source: HNX, VBMA
Vi etna m B ond Ma rket As s oci a ti on
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VIETNAM BOND MARKET REPORT
June-2015
Government bond and Treasury bill payment calendar in July 2015
Table 5: Government bond and Treasury bill payment next month
No.
BOND/BILL TENORS
CODE
(years)
ISSUANCE
DATE
ACTUAL
PAYMENT
DATE
INTEREST PRINCIPAL
TOTAL
PAYMENT PAYMENT PAYMENT
(VND bio) (VND bio) (VND bio)
1
TD1116046
5
04-Jul-2011
06-Jul-2015
455
-
455
2
TB1015055
5
08-Jul-2010
08-Jul-2015
21
200
221
3
TD1217040
5
15-Jul-2012
15-Jul-2015
103
-
103
4
TD1316018
3
15-Jul-2013
15-Jul-2015
350
-
350
5
TD1417079
3
15-Jul-2014
15-Jul-2015
292
-
292
6
TD1419087
5
15-Jul-2014
15-Jul-2015
414
-
414
7
TD1116050
5
25-Jul-2011
27-Jul-2015
488
-
488
8
TD1419088
5
31-Jul-2014
31-Jul-2015
462
-
462
9
TPKB14029
52
weeks
08-Jul-2014
07-Jul-2015
-
2,000
2,000
10
TPKB14030
52
weeks
22-Jul-2014
21-Jul-2015
-
1,000
1,000
2,585
3,200
5,785
Total
Source: State Treasury
Corporate bond
A subsidiary of Ma San Corporation issued VND9,000 billion corporate bond
On June 10, Masan Consumer Holdings issued VND9,000 billion 5-year corporate bond
through the arranger Vietcombank. This is the single largest corporate bond issuance of a
Vietnam private enterprise ever. The registering value surpassed the offering value by 15%.
HVG issued VND300 billion corporate bond
On May 29, Hung Vuong Corporation issued 300 bonds with total face value of VND300
billion. These are inconvertible bond with a 3-year tenor. Coupon rate in the first four period
would be 9%/year, after that the coupon rate would be the average of Vietnam dong 12month deposit rate in 4 largest state-owned banks, plus a 2.5% margin.
Vi etna m B ond Ma rket As s oci a ti on
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VIETNAM BOND MARKET REPORT
June-2015
SECONDARY MARKET
The total trading volume in June was VND86,298 billion
In the secondary market, the total bond trading volume in June was VND86,298 billion,
a 5.7% decrease compared to May. Outright trading volume was VND56,831 billion,
accounting for 65.85% of total trading. Government bonds trading volume was VND71,931
billion, accounting for 83.36% of total trading.
Table 6: Trading volume in June 2015 (VND bio).
Outright
Bond types
Total
547
47,702
84
24,235
Market
share
0.29%
82.25%
8,582
15.10%
5,148
17.47%
56,831
100.00%
29,467
100.00%
Value
Municipal bond
Government bond
Governmentguaranteed bond
Total
Repos
Market
share
0.96%
83.94%
Value
631
71,937
13,730
86,298
Source: HNX, VBMA
Figure 2: Trading value over the past 13 months (VND bio) .
140,000
120,000
36,574
34,038
100,000
30,902
80,000
21,354
19,86026,185
21,947
26,863
60,000
34,48329,467
27,999
21,813
38,933
88,853
96,199
40,000
73,122
61,19061,201
54,80461,504
47,471
20,000
57,808
Repo
Outright
51,14057,02756,831
34,193
0
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb March April May June
Source: HNX, VBMA
Table 7: Bonds with largest volume of outright trading in June 2015.
No.
Bond Code
Issuance date
Initial tenors
Trading value (VND bio)
1
2
3
4
5
6
TD1530287
TD1520256
TD1520259
TD1116040
TD1417072
TD1424173
28-Feb-2015
15-Jan-2015
31-Jan-2015
20-Jun-2011
15-Feb-2014
15-Sep-2014
Total
15 Years
5 Years
5 Years
5 Years
3 Years
10 Years
3,226
3,201
2,364
2,334
1,781
1,256
14,162
Source: HNX, VBMA
Vi etna m B ond Ma rket As s oci a ti on
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VIETNAM BOND MARKET REPORT
June-2015
The total trading value of the above 6 bonds alone accounted for 29.69% of all outright
bond trading in June.
Government bonds account for the large majority of total bond outstanding.
As of the end of June, the market share of Government bonds in total bond outstanding
value dropped slightly to 76.68% (from 77.53% last month) or VND495,449 billion, comes
next was Government-guaranteed bond with 20.19% or VND130,432 billion and the
remaining 3.14% is municipal bond.
Figure 3: Outstanding bond value market share at the end of June 2015:
3.14%
20.19%
Government bond
Gov'-guaranteed bond
76.68%
Municipal bond
Source: HNX, VBMA
Movements of VBMA’s Government Bond Yield Fixing in June
Data from the VBMA Market Makers Chatroom indicated that Government bond yield
fixing at the end of June increased across all tenors compared to May. Specifically: +14 bps
with 1-year bond, +19.6 bps in 2-year bond, 28.8 bps in 3-year bond, +48.1 bps in 5-year
bond, +74.6 bps in 7-year bond and +50.5 bps in 10-year bond.
Vi etna m B ond Ma rket As s oci a ti on
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VIETNAM BOND MARKET REPORT
June-2015
Figure 4: VBMA Gov’ Bond Yield Fixing Curve at the end of April, May and June.
7.000%
6.500%
6.000%
June
May
5.500%
April
5.000%
4.500%
1y
2y
3y
5y
7y
10y
Source: VBMA
Figure 5: Movement of VBMA Gov’ Bond yield fixing in the first 6 months of 2015 .
7.50%
7.00%
6.50%
1y
6.00%
2y
3y
5.50%
5y
5.00%
7y
10y
4.50%
4.00%
Source: VBMA
Vi etna m B ond Ma rket As s oci a ti on
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VIETNAM BOND MARKET REPORT
June-2015
Thank you for reading VBMA’s Monthly Bond Market Report. For more information,
please contact:
VIETNAM BOND MARKET ASSOCIATION
14th Floor, Tower A Vincom, 19 Ba Trieu Str.,Hai Ba Trung Distr., Ha Noi
Tel: (84) 24 3974 8781
Fax: (84) 4 3974 8782
Website: www.vbma.org.vn
Disclaimer:
The information and opinions in this report are those of Vietnam Bond Market Association
(VBMA) research activity. VBMA does not make any representation or warranty, express
or implied, as to the fairness, accuracy, or completeness. While all reasonable care has no
representation as to its accuracy or completeness and it should not be relied upon as such.
VBMA accepts no liability whatsoever for any loss arising from use of this report or its
contents. This report is being supplied solely for informational purposes and may not be
reproduced, distributed or published by recipient for any purpose.
Vi etna m B ond Ma rket As s oci a ti on
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