Growth in Vietnam's GDP has averaged 7.4% since 2000, one of the highest growth rates in Asia. The five-year-old stock market has recently gained enough depth to warrant institutional investor interest for the first time. A recent Merrill Lynch report estimated Vietnam "will be the fastest-growing [Asian] country in the next 10 years, far more exciting [than] Thailand, far more than anywhere else in ASEAN" (the Association of Southeast Asian Nations). All the good economic and financial news gave Moody's enough reason to upgrade Vietnam's sovereign rating for the first time in seven years, from B1 to Ba3. S&P had no hesitation to raise it from BB- to BB.

Last October's sovereign bond issue underscored that optimism. Originally planned as a US$500 million flotation, the debut deal attracted $4.5 billion worth of actual orders, goading underwriters to increase the issuance to $750 million to soak up the excess demand. The US$750m is small in comparison with the 94 trillion dong (US$5.9b) the government has allocated to infrastructure next year. However, the bond will raise Vietnam's profile in the marketplace at a time when investors are looking to diversify their high-yield risk. In addition, it will supply a benchmark for other international bond issues by state-owned companies. Companies planning to tap the capital markets to finance expansion reportedly include PetroVietnam, Vinashin Shipbuilding, Electricity of Vietnam and Vietnam Airlines etc.

Vietcombank Securities Ltd,. (VCBS) offers clients a full-service Fixed Income sales and trading division. Our experienced staff is committed to providing professional services and extensive industry knowledge to meet the client's income, liquidity and risk/return requirements. Our trading desk has developed relationships with major underwriters and dealers, which enable us to offer a broad range of primary and secondary issues. Please login or contact us to get further information on the bond market of Vietnam.