According to the Government bond issuance plan in 2025, the Ministry of Finance has assigned the State Treasury to issue bonds worth up to VND500,000 billion, an increase of 25% compared to the 2024 plan (VND400,000 billion).
This is the highest level of planning allocation in history, reflecting the increasing financial needs of the state budget, and at the same time demonstrating the Government's determination to maintain national financial stability, promote economic development and complete important public investment programs.
In the context of the central budget revenue achieving quite positive results (estimated by the end of March 2025 to reach about 32% of the estimate), but the disbursement rate of public investment capital is still slow (estimated by the end of March 2025 to reach only about 9.7% compared to the plan assigned by the Prime Minister ), the issuance of Government bonds is an important solution to supplement capital sources for the state budget. The State Treasury has organized the issuance of Government bonds with an appropriate volume to ensure timely response to financial needs, especially for development investment projects and payment of principal debts of the central budget.
In the first quarter of 2025, the State Treasury mobilized a total of VND 110,440 billion, reaching 99.49% of the first quarter plan of 2025 assigned by the Ministry of Finance (VND 111,000 billion) and accounting for 22.09% of the issuance plan for the whole year of 2025 (VND 500,000 billion).
This is a remarkable success, especially in the context of volatile factors affecting the financial market, but the State Treasury still ensures financial resources for important budget expenditure tasks.
The volume of government bonds mobilized in the first quarter of 2025 has helped meet the spending needs for economic development investment programs and payment of central budget principal debt according to the set plan.
All government bonds issued during the period were denominated in domestic currency, to protect the stability of the foreign exchange market and exchange rate, and at the same time create favorable conditions for domestic investors to participate in the government bond market.
The issuance is carried out through electronic bidding at the Hanoi Stock Exchange, ensuring transparency and publicity in the capital mobilization process.
Government bonds issued have maturities ranging from 5 to 30 years, of which maturities of 5, 10 and 15 years account for 98.4% of the total issuance volume, reflecting the Government's strategy of issuing long-term bonds to extend the maturity of public debt and reduce short-term debt repayment pressure.
By the end of the first quarter of 2025, the average issuance term of Government bonds was 10.23 years, which is completely consistent with the target set out in Resolution No. 23/2021/QH15 of the National Assembly on the national financial plan and public debt borrowing and repayment for the 2021-2025 period.
Extending the issuance period gives the Government more time to stabilize finances and address macroeconomic issues, while minimizing debt repayment pressure in the coming years.
The Government bond issuance interest rate has been adjusted flexibly by the State Treasury in accordance with developments in the domestic and international financial markets, as well as the monetary policy management viewpoint of the State Bank of Vietnam.
In the first quarter of 2025, the State Treasury gradually adjusted the interest rate on government bond issuance, increasing from 0.06% to 0.19% per year in the first two months of the year and maintaining a stable level from March 2025.
The average interest rate on government bonds issued in the first three months of 2025 remained at 2.91% per year, reflecting the stability of interest rates in the context of still volatile macroeconomic factors.
Entering the second quarter of 2025, the State Treasury continued to issue bonds with a volume of VND 42,427 billion, reaching 35.36% of the issuance plan for the whole year (VND 120,000 billion). The issuance in the second quarter was carried out with diverse maturities, in line with the long-term goals assigned by the National Assembly and market demand.
This is an important step in ensuring a stable source of capital for the state budget and maintaining sustainable economic development. At the same time, the mobilization of government bond capital is also closely linked to the management of the state treasury, helping to save on borrowing costs, improve the efficiency of state budget management and public debt management.
The interest rate of government bond issuance in the second quarter of 2025 will continue to be proactively managed by the State Treasury to suit the market situation and the monetary policy orientation of the State Bank of Vietnam, ensuring stability and attractiveness to domestic investors.
During the second quarter of 2025, the State Treasury will continue to closely coordinate with relevant agencies to review and evaluate the state budget revenue and expenditure situation, as well as the progress of public investment capital disbursement, to ensure that the issuance of government bonds takes place on schedule, meeting the capital needs of the central budget and the actual situation of the financial market.
The State Treasury strives to complete the 2025 government bond issuance plan assigned by the Ministry of Finance, while contributing to stabilizing national finances and promoting the country's economic development.
Source: https://baodaknong.vn/phat-hanh-trai-phieu-chinh-phu-dam-bao-nguon-tai-chinh-cho-ngan-sach-trung-uong-251670.html
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