After seeing Chinese government raised huge fund for project through selling government bonds which are selling like hot cakes, Vietnam decides to copycat that move but with very funny result .
I guess people don't have too much faith on Vietnam government's bonds.
Sometimes, copying won't get it done. lol
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Vietnam highway builder fails to sell bonds again
Reuters - Thursday, August 6HANOI, Aug 5 - State-run Vietnam Expressway Corporation failed to sell any of the 1 trillion dong ($56 million) in government-backed bonds it offered on Wednesday due to the low prices bidders put in, the Hanoi Stock Exchange said.
One bidder sought to buy 50 billion dong of three-year bonds at an annual yield of 11 percent, but that was way above the ceiling of 10 percent, the exchange said in a statement. Some 500 billion dong of this maturity was on offer.
One bidder also sought to buy 2.3 billion dong of five-year bonds at an annual yield of 11 percent, whereas the builder had offered 500 billion dong of the bonds at an annual yield no higher than 10.5 percent, the exchange said.
It wanted to raise the funds to build a highway connecting Hanoi and Lao Cai province on the border with China.
At the previous auction on July 28, the company also failed to sell any of the 1 trillion dong of three-year and five-year bonds because bidders sought to buy the debt at yields above the ceiling rates.
In a separate statement, the exchange said state-run Vietnam Bank for Social Policies would auction government-guaranteed two-year bonds to raise 3 trillion dong on Aug. 11.
Fixings for three-year government bond yields eased to 9.2775 percent on Wednesday from 9.3286 percent on Tuesday, and those on five-year bonds dropped to 9.3950 percent from 9.4571 percent in the previous session, according to Reuters data <VNBMKFIXINGS02>.
http://ph.news.yahoo.com/rtrs/20090805/tbs...ds-4c42a9e.html
Full Version: Following China's way raising fund through selling bonds
lilzz,
You seem to care and pay attention to Vietnam a lot.
When taking on a project, people look at the cost and benefit. If the benefit exceeds the cost, people will invest into the project, hoping for a return. You can only say from the above that the people don't or may not realize the benefit of having the highway yet. However, if it was a different project where the benefit exceeds the cost can easy be identified, then that project would be taken. The "faith in government" factor that you stated above is not strong enough to say why the bond failed to sell.
You seem to care and pay attention to Vietnam a lot.
When taking on a project, people look at the cost and benefit. If the benefit exceeds the cost, people will invest into the project, hoping for a return. You can only say from the above that the people don't or may not realize the benefit of having the highway yet. However, if it was a different project where the benefit exceeds the cost can easy be identified, then that project would be taken. The "faith in government" factor that you stated above is not strong enough to say why the bond failed to sell.
QUOTE (asean.asia @ Aug 6 2009, 11:34 PM) 
lilzz,
You seem to care and pay attention to Vietnam a lot.
When taking on a project, people look at the cost and benefit. If the benefit exceeds the cost, people will invest into the project, hoping for a return. You can only say from the above that the people don't or may not realize the benefit of having the highway yet. However, if it was a different project where the benefit exceeds the cost can easy be identified, then that project would be taken. The "faith in government" factor that you stated above is not strong enough to say why the bond failed to sell.
You seem to care and pay attention to Vietnam a lot.
When taking on a project, people look at the cost and benefit. If the benefit exceeds the cost, people will invest into the project, hoping for a return. You can only say from the above that the people don't or may not realize the benefit of having the highway yet. However, if it was a different project where the benefit exceeds the cost can easy be identified, then that project would be taken. The "faith in government" factor that you stated above is not strong enough to say why the bond failed to sell.
It's IOU guarantee by the govenment. Even if it's losing money project as long as government guarantee people still would buy. This is confidence issue.
i am paying attention because most chinese think tank believe Vietnam is on the very top of the action list.
With the current world financial condition, where investment is uncertain, people tend to hoard on to their money. If it was the opposition where the world economy is thriving, I don't see why VN government cannot get the it needed to fund any project it desires as long as the thriving economy justifies the ability to repay the debt. You are pointing toward the right direction as far as I can see, but you are leaving out the world current financial condition where guarantee is uncertain under current condition.
If one day VN takes over China to become the 4th foreign occupant of China, I will nominate you lolzz to become to the governor of Guang dong province for you to continue your contribution of the Greater Asia under VN rule.
If one day VN takes over China to become the 4th foreign occupant of China, I will nominate you lolzz to become to the governor of Guang dong province for you to continue your contribution of the Greater Asia under VN rule.
QUOTE (lilzz @ Aug 7 2009, 01:05 AM)
It's IOU guarantee by the govenment. Even if it's losing money project as long as government guarantee people still would buy. This is confidence issue.
i am paying attention because most chinese think tank believe Vietnam is on the very top of the action list.
i am paying attention because most chinese think tank believe Vietnam is on the very top of the action list.
QUOTE (asean.asia @ Aug 6 2009, 10:41 PM)
With the current world financial condition, where investment is uncertain, people tend to hoard on to their money. If it was the opposition where the world economy is thriving, I don't see why VN government cannot get the it needed to fund any project it desires as long as the thriving economy justifies the ability to repay the debt. You are pointing toward the right direction as far as I can see, but you are leaving out the world current financial condition where guarantee is uncertain under current condition.
If one day VN takes over China to become the 4th foreign occupant of China, I will nominate you lolzz to become to the governor of Guang dong province for you to continue your contribution of the Greater Asia under VN rule.
If one day VN takes over China to become the 4th foreign occupant of China, I will nominate you lolzz to become to the governor of Guang dong province for you to continue your contribution of the Greater Asia under VN rule.
Governor of Guang Dong province for lilzz and Governor of Guang Xi province for MyEmpire
The goodness of five siblings: Cochin China, An Nam, Ton Kin, Guang Xi, and Guang Dong (Greater Yue Autonomy).
You are all wrong. If I run for any position it has to be the governing position of the district of Sansa
(the 3 "sands"). I'll let you figure which 3 "sands".
(the 3 "sands"). I'll let you figure which 3 "sands".
QUOTE (lilzz @ Aug 7 2009, 07:52 AM)
You are all wrong. If I run for any position it has to be the governing position of the district of Sansa
(the 3 "sands"). I'll let you figure which 3 "sands".
(the 3 "sands"). I'll let you figure which 3 "sands".
lilzz
Please put some clothes on and start to behave like a civilized person. Please do not disappoint us.
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