Vietnam has been "actively" applying a variety of measures to overhaul its underdeveloped corporate bond market, news website Thoi Bao Tai Chinh has reported, citing the state stock regulator.
A more effective corporate bond market will be launched next year, Nguyen Thi Lien Hoa, deputy chief of the State Securities Commission was quoted as saying at a meeting last week.
The revamp is expected to help increase the scale of Vietnam's corporate bond market to be equivalent to 7 percent of its gross domestic product by 2020, from 2.5 percent at the moment, according to the website.
Measures include administrative reforms in bond issuance and the establishment of a corporate bond information center, it said.
Official figures showed the value of corporate bonds issued in Vietnam in 2010-14 annually was VND25-30 trillion (US$1.1-1.3 billion).
Since companies mainly sold their bonds through private placements and mostly to banks, Vietnam's corporate bond market has been operating more like a credit market rather than a capital market, the website quoted the stock regulator as saying.
Such practice was also blamed for the lack of transparency in the market.