Vietnam prepares for launch of corporate bond trading platform

The HNX, in conjunction with the VSD, are fine-tuning their systems and operational processes as they ready for the inauguration of a singular, dedicated marketplace for corporate bonds, aiming to augment liquidity and boost investor engagement in Vietnam's burgeoning capital market.

In an effort to meet the stipulations of Decree 65/2022/ND-CP, the Ministry of Finance has tasked the HNX with the development of an exclusive trading platform for corporate bonds. The HNX has successfully concluded the first phase of the system's construction. From June 2023, the system was subjected to rigorous testing together with the VSD and is on course for an official launch on July 19.

Pham Hong Son, vice chairman of the State Securities Commission, has verified that all requisite preparations for the rollout of the dedicated bond market have been duly completed. This encompasses the promulgation of legal documents, the creation of operational guidelines, and the optimisation of the system's IT infrastructure.

Nguyen Son, chairman of VSD's Board of Directors, said that the VSD has prioritised its resources and coordinated closely with the HNX and other market stakeholders.

"VSD's preparations have reached fruition, positioning us to commence bond registration and provide custodial services for individual bonds," he said.

"We are ready to accept registrations from members wishing to participate in VSD's individual bond settlement system, ensuring smooth operationalisation of the system in compliance with regulatory mandates."

Chairman Nguyen Duy Thinh highlighted that the collaboration between HNX and VSD in organising securities trading and settlement activities had progressed seamlessly, bolstering the growth of Vietnam's securities market.

He is committed to maintaining a strong alliance with VSD, emphasising the diligent and effective implementation of their collaborative agreement to ensure the successful inauguration of the individual bond market.

This development signals a pivotal progression for Vietnam's capital market. The provision of a dedicated platform for trading corporate bonds is expected to enhance transparency and liquidity in the market, thereby attracting more individual investors and propelling growth in the nation's financial landscape.

The State Securities Commission (SSC) is introducing secondary market for corporate bonds, enhancing transparency and investor confidence.

Countries such as Thailand, Malaysia, Indonesia, and others have announced many drastic moves to find solutions to deal with and retain investors in anticipation of possible impacts of the global minimum tax (GMT).

The imminent launch of a corporate bond trading platform is generating interest among investors, yet gaining their trust is an essential aspect of the market’s growth momentum.