Sovereign Bond Sovereign Bond IssuanceIssuance

The Case of VietnamThe Case of VietnamThailand, 18 March 2011Thailand, 18 March 2011

OutlineOutline Overview of Vietnam’s public debt and Overview of Vietnam’s public debt and

Government external debtsGovernment external debts

Mid-term objectivesMid-term objectives

Summary of Vietnam’s recent Summary of Vietnam’s recent sovereign issuance sovereign issuance

Challenges for VietnamChallenges for Vietnam

Solutions for raising funds from Solutions for raising funds from sovereign bondssovereign bonds

Overview on Public Debt of Vietnam Overview on Public Debt of Vietnam (as of December 2010)(as of December 2010)

Public debt accounted for 56.7% GDP, Public debt accounted for 56.7% GDP, o.w:o.w:• Government debt: 45.5% GDP, with:Government debt: 45.5% GDP, with:

Domestic debt:Domestic debt:44%44% External debt:External debt: 56%56%

• Government guarantee: 10.6% GDPGovernment guarantee: 10.6% GDP• Local government debt: 0.6% GDPLocal government debt: 0.6% GDP

Mid-Term ObjectivesMid-Term Objectives

Government External DebtsGovernment External DebtsUSD million

Outstanding

At 31/12/2009

Outstanding

At 31/12/2010 (est.)

ODA and soft loansODA and soft loans 22,55422,554 94.0%94.0% 25,62825,628 91.5%91.5%

Borrowings from Borrowings from foreign investment foreign investment banksbanks 350350 1.5%1.5% 350350 1.3%1.3%

Bonds and notes Bonds and notes holdersholders 1,0381,038 4.3%4.3% 2,0202,020 7.2%7.2%

Total 23,943 100.0% 27,998 100.0%

Summary of Vietnam’s Recent Summary of Vietnam’s Recent Sovereign IssuanceSovereign Issuance

Issuer Government of Vietnam

Offering Size USD1,000 million

Coupon 6.75%

Yield 6.95%

Price 98.576%

Offer Spread UST +332.7

Pricing Date 25 January 2010

Settlement Date 29 January 2010

Maturity Date 29 January 2020

Distribution 144A/Reg S

Rating Ba3 (Moody’s) / BB (S&P)

Listing Singapore Stock Exchange

Book Runners Citi / Barclays Capital / Deutsche Bank

Distribution by Geography Distribution by Geography

Distribution by Investment Distribution by Investment TypesTypes

Challenges for VietnamChallenges for Vietnam

Solutions for Raising Funds Solutions for Raising Funds from Sovereign Bondsfrom Sovereign Bonds

Road map for more regular sovereign issuanceRoad map for more regular sovereign issuance Developing channels for updating information on Developing channels for updating information on

Vietnam’s macroeconomy: updated website and Vietnam’s macroeconomy: updated website and non-deal road shownon-deal road show

Examining international best practices on debt Examining international best practices on debt management and policy development and lessons management and policy development and lessons learned from well-known international learned from well-known international organizations and countries that have successfully organizations and countries that have successfully managed sovereign debtmanaged sovereign debt

Macroeconomic improvement for upgrading Macroeconomic improvement for upgrading sovereign credit ratingssovereign credit ratings

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