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G-bonds: easy to sell, hard to disburse
The state treasury of Viet Nam plans to issue government bonds worth VND50 trillion (US$2.24 billion) in the third quarter of 2016.
Accordingly, the treasury will issue five-year bonds worth VND22 trillion, seven-year bonds worth VND10 trillion, 15-year bonds worth VND7 trillion and the longest term of 30-year bonds worth VND3 trillion.
According to the treasury, the capital mobilisation channel from G-bonds was good in the first half of the year when it sold bonds worth more VND182 trillion, nearly 83 per cent of the earlier plan for the year. After the first half, the treasury has revised its plan to issue more government bonds in 2016 by adding bonds worth another VND30 trillion. So, it aims to issue G-bonds worth VND250 trillion for the whole year under the new plan.
While the G-bond mobilisation was considered successful, the process of G-bond disbursement was slow and failed to support the GDP growth in the context of low economic growth in the first six months, according to the planning and investment ministry (MPI).
MPI said all ministries, sectors and localities disbursed about VND81.8 trillion (US$3.6 billion) of public investment capital in the first five months of this year, completing 32.6 per cent of the disbursement plan for 2016.
MPI said complicated procedures and slow processes in some ministries and localities caused the problem, stating some with the lowest disbursement percentages included the national defence ministry with 9.8 per cent, Hà Nội City with 2.9 per cent, Phú Thọ Province with 2.6 per cent and Tiền Giang Province with 2.3 per cent, besides Sơn La Province with 1.1 per cent.
On July 7, Prime Minister Nguyen Xuan Phuc asked all relevant agencies and local authorities to fast-track the disbursement of public investment capital to accomplish socio-economic development targets by the end of 2016.
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