Bonds in Vietnam
Issues about bonds and the adjustment of regulations related to the placement of bonds that are about to be issued are a matter of concern to corporations and investors. Accordingly, this article will clarify the regulations on 02 forms of bond issuance: (1) Public offering of bonds (2) Private placement of bonds. Bonds mean a type of securities certifying its holders’ lawful rights and benefits to a portion of liabilities of an issuing institution (Clause 3, Article 4 of the Law on Securities 2019). Accordingly, a bond may be issued by an issuer that is an enterprise, Government, local authorities or a bank. Corporate bonds mean a type of securities of a term of at least 1 year which are issued by a corporation, certifying its holder’s lawful rights and benefits to a portion of liabilities of the issuing corporation (Clause 1, Article 4 of Decree No. 153/2020/ND-CP, and Clause 6, Article 3 of Decree No. 155/2020/ND-CP). If classified according to the criteria of issuance form and...