Nha Trang, Vietnam, June 5, 2009
—IFC, a member of the World Bank Group, is contributing to Vietnam’s capital market development by promoting the country’s bond market as an alternative source of financing in the face of the current global economic downturn.
IFC and the Vietnam Bond Market Forum (VNBF) launched a two-day seminar in Nha Trang today, to discuss Vietnam’s nascent bond market and the development of a bond market association. A fully developed bond market, with international practices and procedures, would help the government finance its economic development agenda, including urgent large-scale industrial and infrastructure projects.
At the seminar, senior financial specialists from Vietnam’s Ministry of Finance and the State Bank, together with experts from the World Bank, IFC, VNBF, and Bloomberg, shared insights on the challenges of developing bond markets in Vietnam and other emerging markets.
“This was a valuable opportunity to learn from international experience”, said Hoang Huy Ha, Chairman of the Canvas Committee leading the effort to establish a bond market. “We are currently working with the VNBF to finalize the agenda for the formation of a Vietnam Bond Market Association and an action plan. The advice and support from regulators and authorities are greatly appreciated, and will be used in the design of the association, which we expect to launch in the second half of 2009.”
The seminar also covered the need to develop bond market associations, which play critical roles in the standardization of market practices for originating and trading bonds. Lessons learned were presented by the president of the Thai Bond Market Association, and will factor in the action plan for the Vietnam Bond Market Association.
“The development of the bond market requires government commitment and support combined with active participation from the private sector”, said Margarete O Biallas, IFC Program Manager for Access to Finance in the Mekong Region. “IFC realizes the importance of a well-functioning bond market in economic development, and therefore is willing to support bond market players.”
IFC advises governments, private companies, and industry sectors on how to grow sustainable businesses and create a healthy investment climate. In Vietnam, IFC advisory services are delivered in partnership with Australia, Canada, Finland, Ireland, Japan, New Zealand, the Netherlands, Norway, Sweden, 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 $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
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