CIRCULAR

PROVIDING GUIDELINES ON TENDERS OF GOVERNMENT BONDS, GOVERNMENT-UNDERWRITTEN BONDS AND MUNICIPAL BONDS VIA THE CENTRALIZED SECURITIES TRADING MARKET

To implement Decree 141-2003-ND-CP of the Government dated 20 November 2003 on issuance of Government bonds, Government-underwritten bonds and municipal bonds, the Ministry of Finance provides the following guidelines on tenders of Government bonds, Government-underwritten bonds and municipal bonds (referred to as bonds) via the centralized securities trading market:

I. GENERAL PROVISIONS

1. Issuing organizations, including the State Treasury (issuing treasury bonds, bond for projects under central management or municipal bonds under the authorization of the people's committee at the provincial level), the Development Assistance Fund (issuing investment bonds), enterprises (issuing Government-underwritten bonds), financial or credit institutions (issuing municipal bonds under the authorization of the people's committee at the provincial level); the securities trading centres (the Stock Exchange) and other organizations and individual concerned shall be subject to this Circular.

2. Bonds to be issued via the centralized securities trading market shall be listed and traded at the securities trading

3. Issuing organizations shall, based on the annual plan to raise capital for the State Budget (comprising the central budget and local budgets) and the schedule of use of capital, make monthly or quarterly detailed plans for tendering bonds with each fixed term and provide notification to investors for participation in the market.

4. The securities trading centres (the Stock Exchange) shall act as agents for issuing organizations to consider and approve members participating in the tender, to receive and evaluate tender applications and publish tendering results.

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5.1 Tender for a competitive rate of interest means that members participating in the tender offer their tender rate of interest for the securities trading centre (the Stock Exchange) to select a successful tender rate of interest.

5.2 Tender for a non-competitive rate of interest means that members participating in the tender do not offer their tender rate of interest but register for purchase of bonds at the winning tender rate of interest which is determined on the basis of the result of a competitive interest rate tender.

5.3 Ceiling rate of interest is the maximum rate of interest of issued bonds published by the Minister of Finance from time to time.

5.4 Sale of a bond in the form of discounting means that the issuing organization sells the bond at a price less than its par value and the payment shall be made at its par value at maturity.

5.5 Sale of a bond at its par value means that the issuing organization sells the bond at its par value. Interest will be paid by instalments or in one sum together with principal at maturity.

5.6 Sale of a bond at a price less or more than its par value means that the issuing organization fixes in advance a rate of interest for periodical payments and the sale price of a bond less or more than its par value shall be determined on the basis of the tendering result.

II. SPECIFIC PROVISIONS

1. Issuance and payment currency Bonds to be put up for tender via the centralized securities trading market shall be issued and paid in Vietnamese Dong.

2. Forms and par value of bonds

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(a) With respect to certificates: the Ministry of Finance shall provide items to issuing organizations to print and distribute [certificates] to successful tenderer organizations.

(b) With respect to book entries: The Securities Transaction Centres (the Stock Exchange) and depository organizations shall make entries and manage books.

Bonds shall be Securities Transaction Center and the Stock Exchange in order for them to conduct together the procedures aimed at reduction of book entries of Government bonds.

FOR THE MINISTER OF FINANCE
DEPUTY MINISTER




Le Thi Bang Tam