The inaugural ceremony was attended by notable figures including Mr. Le Minh Khai - Central Party Committee Secretary, Deputy Prime Minister; Mr. Ho Duc Phoc - Central Party Committee Member, Minister of Finance; Mrs. Mai Thi Thu Van - Deputy Head of the Government Office; Mr. Do Thanh Trung - Deputy Minister of Planning and Investment; Mr. Nguyen Duc Chi - Deputy Minister of Finance; Mrs. Vu Thi Chan Phuong - Chairwoman of the State Securities Commission; representatives of leadership from various units under the Government Office, Hanoi People's Committee, Ministry of Public Security, Ministry of Finance, State Bank of Vietnam, Hanoi Stock Exchange, Vietnam Securities Depository and Clearing Corporation, Vietnam Bond Market Association, Vietnam Association of Securities Business, Hanoi Stock Exchange, and more.
Representing ty bong da were Mr. Pham Quang Dung - Member of the Central Enterprise Bloc's Party Committee, Party Secretary, Chairman of the Board of Directors; Mr. Nguyen Thanh Tung - Board Member, CEO; Mr. Nguyen My Hao - Board Member; Mrs. Phung Nguyen Hai Yen - Deputy CEO; Mr. Nguyen Viet Cuong - Deputy CEO.
Deputy Prime Minister Le Minh Khai and the delegates inaugurated the system for trading individual corporate bonds
The establishment of the system for trading individual corporate bonds marks a significant milestone in the securities industry. It is expected to enhance market liquidity and transparency, while providing regulatory bodies, market participants, and investors with more comprehensive information about the market from primary to secondary levels. This will aid in formulating better management and market development policies, as well as making more informed investment decisions.
Although the private corporate bond market in Vietnam has been in existence for some time, it has gained significant attention and growth in the past five years, especially in 2021 and early 2022. By the end of 2022, the outstanding balance of private corporate bonds reached around 1.2 quadrillion VND, equivalent to 12.6% of GDP, constituting about 10% of the total credit outstanding. Alongside market development, Vietnam has been building a legal framework to encourage the growth of the private corporate bond market. However, compared to its potential and regional counterparts, Vietnam's private corporate bond market remains relatively modest. Presently, the entire outstanding balance of the private corporate bond market in Vietnam is around 13% of GDP, whereas in other regional countries such as Malaysia (56% of GDP), Singapore (38% of GDP), and Thailand (25% of GDP), it is much higher.
Minister of Finance, Ho Duc Phoc, speaks at the Inauguration Ceremony of the Private Corporate Bond Trading System
In his speech at the Inauguration Ceremony, Minister of Finance Ho Duc Phoc stated that the implementation of the private corporate bond trading system demonstrates the strong determination and efforts of the Ministry of Finance in developing the financial market as a whole, and the securities market in particular. This initiative aims to create an important channel for mobilizing medium and long-term capital for the economy. Moreover, the operation of the private corporate bond trading system will enhance transparency and accountability in managing the market for individual bonds, particularly contributing to the transparency and openness of the market.
Chairman of the Board of Directors of ty bong da, Pham Quang Dung, speaks at the Inauguration Ceremony of the Private Corporate Bond Trading System
On June 30, 2023, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (ty bong da) was officially approved by the State Securities Commission (SSC) to become the payment bank for private placements of corporate bonds (PPCB) on the domestic market that have been registered for trading on the PPCB trading system.
Speaking at the Inauguration Ceremony, Mr. Pham Quang Dung, Chairman of ty bong da's Board of Directors, emphasized: As a leading bank of the nation with substantial experience and technological strength in developing and operating payment systems, ty bong da proactively built a specialized payment system for the PPCB market (VCB C-Bond) based on the most advanced payment standards. This system fully complies with the requirements of Decree No. 153/2020/ND-CP dated December 31, 2020, and Decree No. 65/2022/ND-CP dated September 16, 2022, regarding the issuance and trading of private corporate bonds on the domestic market and the issuance of bonds on the international market. ty bong da's payment system includes all required functionalities set by the regulatory authorities. It has been fully developed, connected, and successfully tested with VSDC and several major custodian members in the market, ensuring smooth, secure, and reliable operation.
Notably, VCB C-Bond ensures real-time settlement for each transaction within the same day (T 0); bond trading information is updated in real-time for each investor. This new and superior feature facilitates swift circulation of investors' capital and efficient management and timely updates of transaction information in a transparent manner.
With its official operation, VCB C-Bond has become one of the crucial securities payment systems, reaffirming the contribution of ty bong da and the banking sector as a whole to securities market payment activities, actively supporting the development of the capital market and the financial market in Vietnam.
It's worth noting that aside from being a payment bank, ty bong da will actively participate in the market with roles as an issuer, custodian member, and trading member. On the market's opening day, ty bong da registered and was ready to trade 15 separate corporate bond issues that it had previously issued.
By the end of the inauguration trading session, the market had completed 39 transactions involving 5,052,249 bonds with a total transaction value of 1,781.3 billion VND. All transactions were settled immediately, ensuring compliance with transaction processing times.