Vietnamese government plans to issue short-term bonds again this November. File photo
The Vietnamese government has announced its plan to issue short-term bonds again this November, as current bonds with maturities of five years or longer are not selling well, news website Saigon Times Online reported on Friday.
The finance ministry will submit the plan to the National Assembly at its year-end session for approval.
Once the plan is approved, the State Treasury will issue bonds with short terms between three to 12 months to give investors more choices, according to the report.
Last November, Vietnam's legislature asked the government to stop issuing short-term bonds to offset the state budget's deficits.
The lack of diversity has made Vietnamese sovereign debt unattractive to many investors.
As of September 30, Vietnam sold nearly VND127.5 trillion (US$5.58 billion) worth of bonds, down 39 percent year-on-year and equivalent to only half of the annual target, according to the finance ministry.
In its July report, the National Financial Supervision Commission also said the issue of long-term bonds has not been successful.
With long-term bonds, investors find it difficult to react to market changes, the commission said.
While the government can potentially raise bond yields to attract more buyers, such a move will risk increasing the country's debt burden.
The country's public debt is now equivalent to 64.4 percent of its gross domestic product, amounting to over VND2,650 trillion ($116.18 billion), according to recent estimates by the Ministry of Planning and Investment.