IFC and VBMA Help Promote Vietnam’s Bond Market Development to Improve Capital-raising Mechanism
In Hanoi:
Chu Van Anh
Phone: +84 4 3824 7892 ext 608
E-mail: canh1@ifc.org
Ta Bich Thao
Phone: + 84 4 3 933 4950
E-mail: vnbondmarketforum@gmail.com
In Hong Kong:
Andrew Mak
Phone: +852 2509 8110
E-mail: amak@ifc.org
Hanoi, Vietnam, August 14, 2009—IFC,
a member of the World Bank Group, and the Vietnam Bond Market Association
today signed a memorandum of understanding to introduce international best
practices to help promote Vietnam’s bond market development, enhancing
a mechanism to raise capital for infrastructure projects and other pressing
needs.
IFC will continue to provide the Vietnam
Bond Market Association, formerly the Vietnam Bond Forum (VNBF), with advisory
support to accelerate the association’s startup process and build best
practices. IFC worked closely with VBMA’s predecessor from 2008 to raise
public awareness about bond market and bond market association development
and to select a business model for the VBMA and its future activities.
“We expect to build up an effective
association to encourage dialogue between market players and regulators
to jointly develop the legal framework for Vietnam’s bond market,” said
Hoang Huy Ha, Chairman of VBMA’s steering committee. “With support from
IFC’s financial experts, we strongly believe that we will improve market
conditions by introducing and applying best practices in bond trading and
risk management.”
IFC and VNBF have selected the Thai
Bond Market Association as a consultant to support the building of market
conventions and market code of conduct, and to recommend practices for
Vietnam’s bond market.
“Further developing Vietnam’s bond
market is a key step in broadening Vietnam’s financial intermediation
capacity, and it will be an important compliment to bank funding and foreign
direct investment,” said Simon Andrews, IFC Regional Manager for Vietnam,
Cambodia, Lao PDR and Thailand. “In particular, it will be an important
avenue for raising capital for infrastructure projects, housing finance,
social and health care projects as Vietnam continues to grow and address
the challenges of urbanization and generating employment opportunities.”
IFC advises governments, private companies,
and industry sectors on how to grow businesses sustainably and create a
healthy investment climate. In Vietnam, IFC Advisory Services are delivered
in partnership with Finland, Ireland, New Zealand, the Netherlands, and
Switzerland.
About IFC
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $15 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About the Vietnam Bond Market Association
The Vietnam Bond Market Association
obtained the license in May 2009. VBMA has over 50 members including the
biggest commercial foreign and local banks, securities companies and other
institutions. VBMA’s objectives are to support the development of the
bond market, support its memebers’ capability building and enhance the
efficiency of market operation.
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