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.