Khóa luận - Proposals for development of Vietnamese bond market

Contents
Abbreviation Content of Tables and Graphs Preface Introduction
CHAPTER 1: OVERVIEW OF BOND AND BOND MARKET ............................................. 4
1.1. Overview of bonds ....................................................................................................... 4
1.1.1. Definition and characteristics of bond .................................................................. 4
1.1.2. Types of bonds...................................................................................................... 5
1.1.3. Sources of profit from bonds ................................................................................ 7
1.1.4. Factors affecting the price of a bond .................................................................... 8
1.1.5. Risks in investing bonds ....................................................................................... 9
1.2. Overview of bond market .......................................................................................... 11
1.2.1. Definition of bond market................................................................................... 11
1.2.2. Roles of bond market .......................................................................................... 13
1.2.3. Types of bond trading ......................................................................................... 15
1.3. Factors affecting to bond market ............................................................................... 17
1.3.1. Political and economic stability.......................................................................... 17
1.3.2. Legal environment .............................................................................................. 17
1.3.3. Participation of objectives .................................................................................. 18
1.4. Credit rating ............................................................................................................... 18
1.4.1. Definition of credit rating ................................................................................... 18
1.4.2. Function of credit rating ..................................................................................... 18
1.4.3. The importance of credit rating agencies............................................................ 19 CHAPTER 2: OPERATION OF VIETNAMESE BOND MARKET ..................................... 22
2.1. Formation and development of Vietnamese bond market ......................................... 22
2.1.1. Legal framework for the development process of Vietnamese bond market ..... 22
2.1.2. The process of Vietnamese bond market’s formation and development ............ 24
2.2. Operation of Vietnamese bond market ...................................................................... 25

2.2.1. Situation of bond issuance .................................................................................. 25
2.2.2. Bond trading status ............................................................................................. 37
2.3. Assessing operational status of Vietnamese bond market ......................................... 39
2.3.1. General comments .............................................................................................. 39
2.3.2. Achievements...................................................................................................... 41
2.3.3. Limitations .......................................................................................................... 44
2.4. Limitations’ cause ...................................................................................................... 46
2.4.1. Small market size, low liquidity ......................................................................... 46
2.4.2. Liquidity of the bond market .............................................................................. 47
2.4.3. The lack of market makers.................................................................................. 48
2.4.4. The lack of specified credit rating agencies........................................................ 50
2.4.5. Awareness of corporation and investors about bonds are limited ...................... 52
2.4.6. The competitiveness of bonds is low. ................................................................. 54
2.4.7. The legal system is not appropriate .................................................................... 54 Chapter 3: PROPOSALS FOR DEVELOPMENT OF VIETNAMESE BOND MARKET.... 56
3.1. Vietnamese bond market’s prospect in the future...................................................... 56
3.1.1. Opportunities and challenges for the development of bond markets in the coming
period ............................................................................................................................ 56
3.1.2. The views and orientation Vietnamese Bond Market Government.................... 58
3.2. Lessons learned from the development of bond markets in some countries.............. 59
3.3. Proposals for developing Vietnamese bond market................................................... 62
3.3.1. Stabilizing macroeconomic environment, encourage saving and investment .... 62
3.3.2. Diversifying bonds, raising market liquidity ...................................................... 62
3.3.3. Establishing market makers to facilitate operation of the bond market ............. 65
3.3.4. Contributing and developing system in Vietnam credit rating ........................... 67
3.3.5. Raising the awareness of businesses and investors on the bond market ............ 69
3.3.6. Completing the legal system related to the operation of the bond market ......... 70 Conclusion ................................................................................................................................ 72
References