On June 25, 2024, in Hanoi, the 5th General Assembly (2024-2027) of the Vietnam Bond Market Association convened for members to review the activities and achievements of the 4th term and to discuss the direction and plans for the 5th term. The General Assembly also elected the new Executive Committee and Inspection Committee for the 5th term.

The General Assembly was attended by a large number of VBMA members along with guest representatives from the Ministry of Finance, the State Bank of Vietnam, the State Securities Commission of Vietnam, the State Treasury, the Vietnam Stock Exchange, the Hanoi Stock Exchange, the Vietnam Securities Depository and Clearing Corporation, and other domestic and international guests.

The 4th term witnessed significant fluctuations in the domestic bond market, beginning with the impact of the COVID-19 pandemic and continuing through the corporate bond market crisis starting in October 2022. Despite these challenges, with the support of regulatory authorities and the active participation of market members, VBMA continued to make significant contributions to the market’s development.

From 2019 to 2024, the bond market saw positive development, with an expansion that attracted many domestic and international investors. The size of the listed government bond market (G-bonds) increased from VND 1,150 trillion to nearly VND 2,050 trillion, and the total transaction value rose significantly from VND 7,736 billion per session to nearly VND 10,000 billion. The corporate bond market also grew rapidly, from 9% of GDP in 2018 to nearly 12% of GDP in 2024. The legal framework continued to improve, promoting market growth.

In his opening speech at the 5th General Assembly, Mr. Nguyễn Thanh Tùng, President of the Association for the 4th term, reaffirmed VBMA’s mission to unite, support, and protect the legitimate rights and interests of its members through practical policies and activities. He emphasized building a professional bond market community, pioneering market development, gathering market information, and serving as a policy dialogue forum between members and regulatory authorities.

In his address, Mr. Phạm Thanh Hà, Deputy Governor of the State Bank of Vietnam (SBV), highlighted the critical role of the bond market in supporting businesses and the government in raising medium- and long-term capital to meet production, business, and socio-economic development needs. He acknowledged VBMA’s diverse and active contributions to market development during the 4th term, including:

1. Acting as a bridge between members and state regulatory authorities, facilitating easy information exchange through policy dialogue, compiling member feedback on draft policies, and disseminating enacted policies to members and the market. VBMA also assisted regulatory authorities in policy implementation, understanding practical difficulties to inform future policy development.
2. Implementing several market-making agreements among commercial banks, such as agreements for market-making in Repo and Outright G-bond transactions, USD/VND interest rate swap (FX Swap) transactions, and transactions involving debt instruments issued by credit institutions (FI Bond & CD). These agreements helped establish reference bond yields, enhancing market transparency and liquidity.
3. Coordinating the establishment of the credit rating agency VIS, with participation from Moody’s and several members, providing market participants with additional services to assess risks and returns when making investment decisions.

Deputy Governor Phạm Thanh Hà encouraged VBMA to develop a standard corporate bond offering document, including terms and conditions for corporate bonds. He acknowledged these practical activities and the continuous efforts of the Association as vital for the development of the Vietnamese corporate bond market, providing necessary foundations and infrastructure for deep and sustainable market development.

He hoped the Association would continue to attract more members. The strength of the Association lies in unity; active member participation in the Association’s activities will enhance its professionalism, efficiency, and growth alongside the development of the Vietnamese bond market.

Mr. Nguyễn Hoàng Dương, Deputy Director of the Department of Banking and Financial Institutions at the Ministry of Finance, appreciated VBMA’s contributions to bond market development. He praised the Association’s role in connecting, protecting the legitimate rights and interests of its members, and serving as a forum for information exchange between members and regulatory authorities. The policy consultation and dialogue activities have significantly contributed to improving the legal framework and market operations, including government bonds (G-bonds), corporate bonds, and green bonds, establishing market conduct standards, and standardizing market trading systems according to international practices, enhancing market liquidity.

Deputy Director Nguyễn Hoàng Dương proposed the following directions and solutions for the next phase of VBMA operation:

1. Strengthening the organizational structure and personnel to continue the dialogue channel and contribute to improving the legal framework for bond market development.
2. Enhancing communication with the Ministry of Finance on operational activities.
3. Collaborating with the Ministry of Finance and the State Bank to review policies to attract foreign investors to the capital and bond markets and strive to include Vietnamese G-bonds in international bond indices to attract more foreign investment.
4. Improving the transparency and efficiency of capital mobilization and service provision by members in the corporate bond market, ensuring compliance with laws and market standards. Actively promoting and training to increase market knowledge, financial analysis skills, risk assessment, and investor responsibility in market activities.
5. Promoting the green bond market and encouraging members to access green bond issuance channels.
6. Finalizing and issuing standards on ethics and operational handbooks for market activities and service provision. Members of the Association should lead in implementing the highest standards of service provision in the bond market.

The General Assembly discussed and unanimously approved the report on activities in the 4th term and the orientation for the 5th term. The General Assembly elected the Executive Committee for the 5th term with 28 members. The 5th term Executive Committee convened and elected the Standing Committee with 13 members, including the Chairman, 4 Vice Chairs, and the General Secretary. The list of the 5th term Executive Committee is as follows:

The General Assembly elected the Inspection Committee for the 5th term with three members: Head of the Committee - Ms. Nguyễn Minh Châu, Deputy CEO of Military Bank; and two members, Ms. Nguyễn Thị Kim Thúy - Portfolio Manager at Bảo Việt Fund Management Company and Ms. Hồ Nguyễn Thúy Vy, Deputy CEO of Nam Á Bank.

In his closing speech at the General Assembly, Mr. Lê Duy Hải, the new Chairman for the 5th term, emphasized that the Association would continue the work from the 4th term and achieve the goals set by the 5th General Assembly. From its position and role, VBMA is ready to collaborate with state regulatory authorities to develop the bond market specifically and the capital market in general. He committed to maximizing efforts to implement VBMA's activities, enhance its role, and build the Association’s reputation and position, both domestically and internationally.

On the same day, June 25, 2024, VBMA organized an Award Ceremony for market makers in Outright, Repo (G-bonds), and FX Swap transactions.

VBMA currently provides four yield curves for the markets, assisting members with reference prices for market transactions through the implementation of four market maker agreements: (1) Market maker agreement for Outright G-bond transactions since 2012; (2) Market maker agreement for Repo G-bond transactions since June 2020; (3) Market maker agreement for FX Swap transactions since September 2021; and (4) Market maker agreement for debt instruments issued by credit institutions (FI Bond & CD) since September 2023.