Circular No. 111/2015/TT-BTC guides the issuance of government bonds in the domestic market.

CIRCULAR

Guidelines for issuing government bonds in the domestic market

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Pursuant to the Law on Public Debt Management dated June 17, 2009;

Pursuant to the Securities Law dated June 29, 2006 and the Law Amending and Supplementing Certain Provisions of the Securities Law dated November 24, 2010;

Pursuant to the State Budget Law dated December 16, 2002;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 01/2011/NĐ-CP dated January 5, 2011 on the issuance of government bonds, government-guaranteed bonds, and local government bonds;

At the proposal of the Director of the Department of Financial Affairs of Banks and Financial Institutions,

The Minister of Finance issues this Circular guiding the issuance of government bonds in the domestic market. 

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

Article 1. Scope of Application:

a) This Circular provides detailed guidance on the issuance of government bonds (hereinafter referred to as bonds) in the domestic market;

b) The methods, procedures, and formalities for organizing the repurchase, exchange, amendment of registration, custody, listing of repurchased and exchanged bonds shall be carried out in accordance with other guiding documents of the Ministry of Finance.

2. The subjects to which this Circular applies are the State Treasury and organizations and individuals related to the issuance of bonds in the domestic market.

Article 2. Explanation of terms

In addition to the terms defined in Decree No. 01/2011/NĐ-CP, the terms in this Circular shall be understood as follows:

1. "Primary issue bonds" are new bonds issued for the first time on the primary market.

2. "Supplementary issue bonds" are additional bonds issued for a bond code currently in circulation, having the same nominal interest rate and maturity date as the circulating bonds.

3. "Bond issuance date" is the payment date for purchasing bonds. For primary issue bonds, the bond issuance date is also the effective date of the bonds.

4. "Bond issuance organization date" is the auction date for bonds issued through the auction method and is the date when the State Treasury signs the guarantee contract for bond issuance for bonds issued through the guarantee method.

5. "Payment date for purchasing bonds" is the date when the bond purchaser pays the purchase price to the issuer.

6. "Nominal interest rate of bonds" is the annual percentage (%) interest calculated on the face value of the bonds that the issuer must pay to the bondholders according to the conditions and terms of the bonds.

7. "Bond issuance interest rate" is the winning bid interest rate, the guarantee issuance interest rate determined by the State Treasury based on the auction results, guarantee issuance of bonds as stipulated in this Circular; or the interest rate announced by the Ministry of Finance in cases of issuance through agency and retail sales through the State Treasury system.

8. "Remaining term of bonds" is the actual remaining time from the supplementary bond issuance date to the bond maturity date.

9. "Par value issuance" is the issuance of bonds at a price equal to the face value of the bonds.

10. "Below par value issuance" is the issuance of bonds at a price lower than the face value of the bonds.

11. "Above par value issuance" is the issuance of bonds at a price higher than the face value of the bonds.

12. "Non-coupon paying bonds" are bonds issued below par value, not paying periodic interest but only paying both principal and interest at maturity.

13. "Single-price bidding" is a method of determining the auction result whereby the bond issuance interest rate is the highest winning bid rate applicable to all successful bidders.

14. "Multiple-price bidding" is a method of determining the auction result whereby the bond issuance interest rate for each successful bidder is exactly the bid rate of that bidder.

15. "Final registration date of bonds" is the date when the Vietnam Securities Depository determines the list of bondholders for interest and principal payments.

Article 3. Issuing Subjects

1. The issuing subject of bonds is the Ministry of Finance.

2. The Ministry of Finance authorizes the State Treasury to organize the issuance of bonds in accordance with this Circular.

Article 4. Terms and Conditions of Bonds

In addition to the terms and conditions of bonds stipulated in Article 6 of Decree No. 01/2011/NĐ-CP, the Ministry of Finance shall provide specific guidance on the terms and conditions of bonds as follows:

1. Tenor

a) Treasury bills have standard tenors of thirteen (13) weeks, twenty-six (26) weeks, and fifty-two (52) weeks;

b) Government bonds and national construction bonds have standard tenors of two (2) years, three (3) years, five (5) years, seven (7) years, ten (10) years, fifteen (15) years, twenty (20) years, and thirty (30) years;

c) The Ministry of Finance shall specify other standard tenors for bond issuance when necessary;

d) Based on the provisions of points a, b, and c of this clause and the treasury management objectives, the State Treasury shall specify the specific tenors of bonds for each issuance round.

2. Par value

a) The face value of bonds is one hundred thousand (100,000) VND. Other face values are multiples of one hundred thousand (100,000) VND;

b) The Ministry of Finance shall specify the specific face value of foreign currency bonds for each issuance round according to the foreign currency bond issuance project.

3. Issuance Methods Bonds shall be issued through the following methods: auction issuance, underwriting issuance, agency issuance, and retail issuance through the State Treasury system.

4. Form

a) Bonds issued through auction and underwriting methods shall be issued in book-entry form or electronic data form;

b) Bonds issued through agency and retail methods shall be issued in certificate form, book-entry form, or electronic data form.

5. Nominal Interest Rate of Bonds

a) The nominal interest rate of bonds may be a fixed rate or a floating rate as announced by the State Treasury at the time of issuance;

b) In the case where the nominal interest rate of bonds is a floating rate, the Ministry of Finance shall announce the reference interest rate and the method for determining the issue price of bonds for each issuance round.

6. Payment of Interest and Principal of Bonds

- For periodic interest-paying bonds issued through auction and underwriting methods, bond interest shall be paid periodically every six (06) months or twelve (12) months, and the principal of the bond shall be paid once on the maturity date of the bond;

- For non-periodic interest-paying bonds issued through auction and underwriting methods, the issuing entity does not pay periodic interest but only pays both principal and interest once on the maturity date;

- For bonds issued through agency and retail methods through the State Treasury system, bond interest shall be paid periodically every six (06) months or twelve (12) months; the principal of the bond shall be paid once on the maturity date or prepaid according to the regulations of each issuance round.

7. Supplementary Bond Issuance The State Treasury decides on supplementary bond issuance to ensure market liquidity. The remaining term of the bond code at the time of supplementary issuance must be one (01) year or more.

Article 5. Interest Rate for Issuing Bonds

1. The Ministry of Finance shall stipulate the framework for interest rates for issuing bonds during each period or each issuance round.

2. Based on the interest rate framework prescribed in Clause 1 of this Article, the State Treasury shall select and decide the interest rate for issuing bonds for each issuance round based on that framework.

Chapter II

ISSUING BOND PLANNING AND ORGANIZATION

Article 6. Building and Announcing the Bond Issuance Plan

1. Annually, based on the capital mobilization targets for the state budget and for development investment approved by the National Assembly, and the state budget management plan, the State Treasury shall build and announce the anticipated bond issuance plan for the entire year.

2. Quarterly, based on the annual bond issuance plan and the quarterly state budget management plan, the State Treasury shall build and announce the anticipated bond issuance plan for each quarter.

3. The annual and quarterly bond issuance plans shall be published on the electronic news website of the Ministry of Finance, the State Treasury, and the Securities Trading Exchange.

Article 7. Organizing Bond Issuance

1. Based on the announced bond issuance plan, the State Treasury shall organize the issuance of bonds in accordance with this Circular and related legal documents.

2. The issuance of treasury bills through auction at the State Bank Securities Trading Department or direct sale to the State Bank shall be carried out according to the guidance documents of the Ministry of Finance and the State Bank.

3. For the issuance of national construction bonds and foreign currency-denominated bonds (if any), the Ministry of Finance shall draft a proposal to submit for approval.

a) Purpose of issuance;

b) Conditions and terms: form, term, currency, face value, interest rate, issuance time and method of interest and principal repayment; anticipated issuance volume;

c) Purchasing entities;

d) Issuance organization plan.

4. For bonds issued through retail sales via the State Treasury system or through distributors, the State Treasury shall develop an issuance plan, submit it to the Ministry of Finance for approval before organizing its implementation.

Article 8. Schedule for Bond Issuance

1. For bonds issued through auction or guarantee methods:

a) The issuance date is every Wednesday of each week. In certain cases, to ensure the development of the bond market and fund management needs, the State Treasury may decide on a different issuance date from Wednesday of each week.

b) The payment date for purchasing bonds is the next working day following the issuance date.

c) Based on the provisions of points a and b of this Clause, the State Treasury shall announce the anticipated schedule for bond issuance through auction and guarantee methods for the following year on the electronic news website of the Ministry of Finance, the State Treasury, and the Securities Trading Exchange before December 31 of the preceding year.

2. For bonds issued through distributor or retail methods via the State Treasury system:

a) Based on the bond issuance plan according to the scheme decided by the Ministry of Finance, the State Treasury shall announce the issuance timeframe and organize its implementation in accordance with this Circular.

b) The payment date for purchasing bonds is the date when investors purchase bonds from distributors or at the State Treasury.

Article 9. Tender Participants

1. Annually, based on the conditions to become tender participants for bond issuance (hereinafter referred to as tender participants) and the criteria for evaluating the activities of tender participants as stipulated in Articles 10, 11, and 14 of this Circular, the Ministry of Finance selects and publishes the list of tender participants. The list of tender participants shall be published before December 31 each year on the electronic news page of the Ministry of Finance, State Treasury, and Stock Exchange.

2. Vietnam Social Security and Vietnam Deposit Insurance Corporation are recognized as tender participants, specifically as follows:

a) Participate directly in non-interest competitive bidding;

b) Participate in interest competitive bidding through other tender participants;

c) Vietnam Social Security and Vietnam Deposit Insurance Corporation are not required to comply with the provisions on rights and obligations of tender participants as stipulated in Article 10 of this Circular.

Article 10. Rights and Obligations of Tender Participants

1. Tender participants have the following rights:

a) They are the sole entities eligible to participate in government bond issuances, government-guaranteed bonds, and local government bonds through tendering. Tender participants may participate in tenders to purchase bonds for themselves or for their clients;

b) They are prioritized by the State Treasury to be selected as primary guarantors for bond issuances under the guarantee method if they meet the conditions specified in Article 25 of this Circular;

c) They are prioritized by the State Treasury to be selected as agents for bond issuances under the agency method;

d) They are entitled to participate in regular exchanges with the Ministry of Finance regarding bond issuance operations and policy orientations for the development of the bond market;

đ) They are allowed to register to purchase additional bonds immediately after the tender session according to the notification of the State Treasury if they meet the conditions specified in Clause 2, Article 22 of this Circular.

2. Tender participants have the following obligations:

a) To participate in bond tenders at a frequency and interest rate level that is reasonable and in accordance with the regulations of the Ministry of Finance during each period;

b) To purchase government bonds annually with a minimum volume as prescribed by the Ministry of Finance during each period;

c) To fully pay the purchase price of successfully bid bonds within the due date;

d) To publish interest rates or reference prices for buying and selling on the specialized government bond market according to the regulations of the Stock Exchange;

đ) To implement reporting procedures as stipulated in Article 44 of this Circular.

3. Based on market conditions, bond issuance plans, and the provisions in Clauses 1 and 2 of this Article, the Ministry of Finance will provide specific guidance on the rights and obligations of tender participants during each period.

Article 11. Conditions for New Registration of Tender Participants

1. They must be commercial banks, financial companies, securities companies, insurance companies, investment funds, and other financial institutions established and operating legally in Vietnam.

2. They must have a minimum subscribed capital equal to the statutory capital requirement as stipulated by relevant laws.

3. They must have a minimum operational period of three (03) years. In cases where an organization is formed through mergers, divisions, or consolidations, the operational period includes the time prior to such mergers, divisions, consolidations, or integrations.

4. They must be members of the specialized government bond market at the Stock Exchange.

5. They must participate in purchasing or brokering purchases and sales of bonds on the primary market or secondary market with a minimum volume as prescribed by the Ministry of Finance in point b, Clause 2, Article 10 of this Circular in one (01) consecutive year prior to the submission of the application to become a tender participant. The volume of purchases on the primary market includes purchases made through tender participants, combined guarantors, issuing agents, and retail sales methods.

Article 12. Documents for registering new bidding members

1. Application form to become a bidding member according to the model prescribed in Appendix 1 of this Circular.

2. Copy of Business License (Copied from the original book, certified copy issued by a competent state agency or unverified copy presented together with the original for verification).

3. Financial statements of the three (03) consecutive years prior to the year of application to become a bidding member. The financial statements must be audited by an independent auditing organization legally operating in Vietnam.

4. Quarterly financial report up to the nearest date when the application is submitted.

5. Report on participation in the bond market for at least one (01) consecutive year prior to the submission date according to the reporting models prescribed in Appendix 2 of this Circular.

6. Copy of the document recognizing membership in the Government Bond Market Specialized Department at the Stock Exchange.

Article 13. Procedures and formalities for recognizing organizations newly registered as bidding members

1. Recognition of organizations registering to become bidding members is reviewed and announced annually by the Ministry of Finance.

2. Organizations meeting the conditions stipulated in Article 11 of this Circular wishing to become bidding members for the following year shall submit one (01) set of documents as prescribed in Article 12 of this Circular to the Ministry of Finance. The receipt period is from November 1 to November 10 each year.

3. Within five (05) working days from the date of receiving the documents, the Ministry of Finance will check the completeness and validity of the documents and request the organization to supplement the documents if necessary.

4. After receiving a complete set of documents, the Ministry of Finance will review and evaluate according to the criteria prescribed in Article 11 of this Circular. Based on the results of reviewing the documents, the Ministry of Finance will notify the list of organizations selected as bidding members as prescribed in Clause 1, Article 9 of this Circular. In case the documents do not meet the conditions, the Ministry of Finance will issue a letter notifying the submitting organization and clearly stating the reasons.

Article 14. Annual evaluation to maintain the status of bidding members

1. Annually, the Ministry of Finance evaluates the activities of bidding members to decide on maintaining their status as bidding members for the next year. The content of the evaluation includes:

a) The conditions of bidding members prescribed in Clauses 1, 2, and 4, Article 11 of this Circular;

b) The obligations of bidding members prescribed in Clauses 2 and 3, Article 10 of this Circular.

2. Procedure for annual evaluation to maintain the status of bidding members:

a) From November 1 to November 10 each year, bidding members are responsible for submitting to the Ministry of Finance a report on the results of participating in the bond market during the evaluation period from November 1 of the previous year to October 31 of the current year. The content of the report is implemented according to the provisions of Clause 2, Article 44 of this Circular;

b) Based on the reports of bidding members as prescribed in point a of this clause and the database of the Ministry of Finance, the Ministry of Finance will evaluate the operation of bidding members according to the provisions of Clause 1 of this Article. Bidding members who fully meet the conditions and obligations will continue to maintain their status as bidding members for the next year and will be published in the list of bidding members as prescribed in Clause 1, Article 9 of this Circular. For bidding members who do not fully meet the conditions and obligations to continue as bidding members, the Ministry of Finance will issue a notification letter and clearly state the reasons.

Article 15. Annual Evaluation and Ranking of Bid Members

1. Annually, the Ministry of Finance evaluates and ranks bid members based on their level of participation in the bond market according to criteria including the financial situation of the business, participation in the primary market, and participation in the secondary bond market. Specific criteria are set forth in Appendix 3 of this Circular. The weight of each criterion is determined by the Ministry of Finance for each period based on the development of the bond market.

2. Process for Evaluating and Ranking Bid Members: Based on the annual report of the bid member, the database of the Ministry of Finance, ranking criteria, and the announced weight of each criterion, the Ministry of Finance conducts the evaluation and ranking of bid members. The results of the evaluation and ranking of bid members are published on the Ministry of Finance's electronic news website and the Securities Trading Corporation.

Article 16. Notifications Required to the Ministry of Finance

Within ten (10) working days from the date of changes in the following contents, bid members must notify the Ministry of Finance in writing:

1. Revocation or withdrawal of the Business License.

2. Splitting, merging, consolidating, converting, suspending operations, dissolution, or bankruptcy.

3. Withdrawal of status or voluntary termination of status as a specialized government bond market member at the Securities Trading Corporation.

4. Business operations being subject to special supervision by competent state agencies as prescribed by relevant laws.

Article 17. Removal of Bid Member Status

1. The Ministry of Finance considers removing the status of bid members in the following cases:

a) Revocation or withdrawal of the Business License;

b) Suspension of operations, or dissolution, or bankruptcy;

c) Business operations being subject to special supervision by competent state agencies;

d) Submission of a request not to be a bid member;

e) Failure to meet the conditions to continue as a bid member as notified by the Ministry of Finance under Article 14 of this Circular.

2. The Ministry of Finance will notify in writing organizations whose bid member status has been removed and publish the information on the Ministry of Finance's, State Treasury's, and Securities Trading Corporation's electronic news websites.

Chapter III

ISSUES OF BOND ISSUANCE

Section 1

BIDDING FOR BOND ISSUANCE

Article 18. Forms of Bidding and Methods for Determining Winning Bid Prices

1. Bond bidding is conducted in one (01) of two (02) forms, including:

a) Competitive interest rate bidding;

b) Combined competitive and non-competitive interest rate bidding.

2. The outcome of bond bidding is determined by one (01) of two (02) methods:

a) Single-price bidding;

b) Multiple-price bidding. Based on market development, the State Treasury reports to the Ministry of Finance for approval before implementing multiple-price bidding. The Ministry of Finance's approval includes: the time to organize the bidding and the expected term of bonds issued through multiple-price bidding.

3. The State Treasury provides specific details about the form of bidding and the method for determining the bidding outcome for each bond issuance bidding round.

Article 19. Principles of Tender Organization

1. Maintain confidentiality of all bidding information of tender participants.

2. Implement transparency and equality regarding rights and obligations among tender participants in accordance with the provisions of the law.

3. In cases where the tender is organized in a combined competitive interest rate and non-competitive interest rate form as stipulated in Point b Clause 1 Article 18 of this Circular, the total quantity of bonds issued to non-competitive interest rate bidding participants must ensure that it does not exceed thirty percent (30%) of the total quantity of bonds called for tender in the tender session.

Article 20. Tender Organization Procedures and Formalities

1. At least four (04) working days before the bond issuance date, based on the request of the State Treasury, the Securities Trading Department sends a bond issuance notice to all tender participants and publishes the information on its electronic news website. The content of the notice includes:

a) The bond code to be issued, assigned by the Vietnam Securities Depository;

b) The term of the bond, the expected quantity called for tender for each bond code, specifying whether the bond is being issued for the first time or as a supplementary issue. For supplementary issues, the notice must specify the conditions and terms of the currently circulating bonds;

c) The issuance date, issue date, payment date, interest payment date, and maturity date for each bond code;

d) The method of interest and principal payment;

đ) The tender format;

e) The method of determining the tender results;

g) The reference interest rate and the method of determining the selling price of the bond for floating-rate bonds;

h) The account for receiving bond purchase payments of the State Treasury.

2. By no later than ten thirty (10:30) on the issuance date, tender participants send bidding information to the Securities Trading Department according to the procedures and bidding registration forms specified by the Securities Trading Department. Each tender participant and each customer of a tender participant competing for interest rates may submit up to five (05) bid levels on each bidding sheet for each called-for-tender bond code, each bid level including the bid interest rate (to two decimal places) and the corresponding bond quantity. For customers' bond purchases, tender participants must provide full customer names, bid interest rates, and corresponding quantities for each customer.

3. No later than fifteen (15) minutes after the last bidding registration period specified in Clause 2 of this Article, the Securities Trading Department opens the bids, compiles the bidding information, and sends it to the State Treasury.

4. Based on the compiled bidding information received from the Securities Trading Department, the State Treasury determines the issuance interest rate for each called-for-tender bond code and notifies the Securities Trading Department to determine the bond tender results in accordance with Article 21 of this Circular.

5. Upon completion of the bond issuance session, the Securities Trading Department electronically notifies the tender participants of the tender results through the electronic bond tender system.

6. Upon completion of the bond issuance session, the Securities Trading Department reports the entire bond issuance results (including the tender results specified in Clause 5 of this Article and additional bond issuance results immediately following the tender session as stipulated in Article 22 of this Circular, if applicable) to the State Treasury and the Vietnam Securities Depository in accordance with the content specified in Appendix 4 of this Circular. Simultaneously, it publishes the bond issuance results on its electronic news website in accordance with Clause 1 and Clause 2 of Article 45 of this Circular.

Article 21. Determining the Results of the Auction

1. Basis for determining the winning bid interest rate, nominal interest rate, winning bid volume, and bond selling price:

a) The auctioned bond volume;

b) Bid interest rates and volumes of bonds offered;

c) The issuance interest rate range as stipulated in Article 5 of this Circular.

2. Method for determining the winning bid interest rate:

a) For single-price bidding method

The winning bid interest rate is the highest bid interest rate applicable to all bidders (both competitive and non-competitive interest rate bidders), selected in ascending order of bid interest rates, satisfying both of the following conditions simultaneously:

- Within the interest rate range prescribed by the Ministry of Finance;

- The cumulative issuance volume of bonds up to the winning bid interest rate does not exceed the auctioned bond volume.

b) For multiple-price bidding method

- The winning bid interest rate applied to each competitive bidder is their bid interest rate, selected in ascending order of bid interest rates, satisfying both of the following conditions simultaneously:

+ The weighted average of the winning bid interest rates does not exceed the interest rate range decided by the Ministry of Finance;

+ The cumulative issuance volume of bonds up to the highest winning bid interest rate does not exceed the auctioned bond volume.

- The winning bid interest rate applied to non-competitive bidders is the weighted average of the winning bid interest rates, rounded down to two decimal places.

3. Method for determining the winning bid volume for each bidder:

a) For bonds bid under the competitive interest rate method:

The issuance volume of bonds for each competitive bidder is equivalent to their bid volume. If at the highest winning bid interest rate, the cumulative bid volume exceeds the auctioned bond volume, the remaining portion of the auctioned bond volume is allocated among the bidders at the highest winning bid interest rate in proportion to their bid volumes, rounded down to ten thousand units of bonds.

b) For bonds bid under the combined competitive and non-competitive interest rate method:

- The issuance volume of bonds for each competitive bidder is equivalent to their bid volume. If at the highest winning bid interest rate, the cumulative bid volume exceeds the auctioned bond volume, the remaining portion is allocated among the bidders at the highest winning bid interest rate in proportion to their bid volumes, rounded down to ten thousand units of bonds, after deducting the bid volumes at lower interest rates and the issuance volumes for non-competitive bidders.

- The issuance volume of bonds for each non-competitive bidder is equivalent to their bid volume. If the total bid volume exceeds the limit specified in Clause 3, Article 19 of this Circular, the issuance volume for each non-competitive bidder is allocated in proportion to their bid volume, rounded down to ten thousand units of bonds.

- If all competitive bidders fail to win, bonds will not be issued to non-competitive bidders.

4. Illustrative examples of determining the winning bid interest rate, nominal interest rate, and allocation of winning bid volume are provided in Appendix 5 of this Circular.

5. The amount of bond sales is determined by multiplying the number of bonds sold to bondholders by the price of one bond.

6. Determining the price of one non-interest-paying bond for both initial issuance and additional issuance:

Where:

GG = Price of one bond (rounded to the nearest dong)

MG = Face value of the bond

a = Number of days from the payment date of the bondholder to the next interest payment date

E = Number of days in the interest payment period when the payment occurs

t = Number of assumed interest payment periods from the payment date to the bond maturity date

Lt = Issuance interest rate for the bondholder (% per year)

7. Determining the price of one fixed-rate bond with periodic interest payments and equal interest payment periods:

a) For initial issuance:

- The price of one bond is determined as follows:

b) For additional issuance:

- If the payment date of the bond is before or on the final registration date of the next interest payment period, the price of one bond is determined as follows:

- If the payment date of the bond is after the final registration date of the next interest payment period, the price of one bond is determined as follows:

Where:

GG = Price of one bond (rounded to the nearest dong)

MG = Face value of the bond

Lc = Nominal interest rate of the bond (% per year). For initial issuance, the nominal interest rate of the bond is the weighted average of the winning bid interest rates applied to competitive bidders, rounded down to one decimal place. For additional issuance, Lc is the nominal interest rate of the existing bonds being supplemented.

k = Number of periodic interest payments in one year

d = The number of actual days between the date of payment for purchasing bonds by the bondholder and the first interest payment date of the bond from the purchase payment date

E = The number of actual days within the interest payment period during which additional bonds are issued

t = The number of interest payments made between the date of payment for purchasing bonds by the bondholder and the maturity date of the bond

Lt = The issue interest rate of the bond for the bondholder (% per year)

8. Determining the selling price of one (01) bond with a fixed nominal interest rate, periodic interest payments, and a first interest payment period shorter or longer than subsequent periods

a) Determining the amount of interest of one (01) bond:

- Formula to calculate the amount of interest of one (01) bond for the first interest payment period when the first interest payment period is shorter than subsequent periods:

- Formula to calculate the amount of interest of one (01) bond for the first interest payment period when the first interest payment period is longer than subsequent periods:

- Formula to calculate the amount of interest of one (01) bond for subsequent interest payment periods:

Where:

GL1 = The amount of interest payment of one (01) bond for the first interest payment period (rounded to the nearest whole unit)

GLn = The amount of interest payment of one (01) bond for subsequent interest payment periods (rounded to the nearest whole unit)

MG = Face value of the bond

Lc = The nominal interest rate of the bond (% per year). For newly issued bonds, the nominal interest rate of the bond is the weighted average of the bid interest rates applied to competitive bidding members and rounded down to one decimal place. For additional issued bonds, Lc is the nominal interest rate of the circulating bond being additionally issued.

k = The number of periodic interest payments in one year

a1 = The number of actual days between the date of payment for purchasing the bond and the first interest payment date from the purchase payment date

a2 = The number of days from the date of payment for purchasing the bond by the bondholder to the assumed regular interest payment date

E = The number of days within the assumed regular interest payment period when the payment occurs

b) Determining the selling price of one (01) newly issued bond:

- In the case where the bond makes periodic interest payments and the first interest payment period is shorter than subsequent periods, the selling price of one (01) bond is determined as follows:

- In the case where the bond makes periodic interest payments and the first interest payment period is longer than subsequent periods, the selling price of one (01) bond is determined as follows:

GG = Price of one bond (rounded to the nearest dong)

GL1 = The amount of interest payment of one (01) bond for the first interest payment period, rounded to the nearest whole unit (according to the formula stated above at point a)

MG = Face value of the bond

Lt = The issue interest rate of the bond for the bondholder (% per year)

Lc = The nominal interest rate of the bond (% per year), which is the weighted average of the bid interest rates applied to competitive bidding members and rounded down to one decimal place. For additional issued bonds.

k = The number of periodic interest payments in one year

a1 = The number of actual days between the date of payment for purchasing the bond and the first interest payment date from the purchase payment date

a2 = The number of days from the date of payment for purchasing the bond by the bondholder to the assumed regular interest payment date

E = The number of days within the assumed regular interest payment period when the payment occurs

t = The number of interest payments made between the date of payment for purchasing the bond by the bondholder and the maturity date of the bond

- For additional issued bonds:

+ In the case where the payment date for purchasing the bond is before or on the final registration date to receive the first interest payment, the selling price of one (01) bond is determined according to the formula applicable to newly issued bonds with a first interest payment period shorter or longer than subsequent periods.

+ In the case where the payment date for purchasing the bond is after the final registration date to receive the first interest payment, the selling price of one (01) bond is determined according to the formula applicable to bonds with equal interest payment periods and issued additionally as stipulated in Clause 7 of this Article.

Article 22. Issuing Additional Bonds Immediately After Auction Session

1. Based on the auction results stipulated in Article 20 of this Circular, the State Treasury decides whether to issue additional bonds or not immediately after the auction session and notifies the Securities Trading Center as prescribed in Clause 2 of this Article.

2. The procedure for issuing additional bonds immediately after the auction session:

a) Principles for issuing additional bonds immediately after the auction session:

- Only applicable to bond codes that have won bids at the auction session held at 10:30 AM according to the auction result announcement prescribed in Clause 5 of Article 20 of this Circular.

- The volume of additional issuance is decided by the State Treasury but shall not exceed 30% of the tender volume for each bond code as announced in Clause 1 of Article 20 of this Circular.

- The interest rate for issuing additional bonds for each tendered bond code is determined by the winning bid interest rate in the case of single-price bidding or by the weighted average of the winning bid interest rates in the case of multiple-price bidding, rounded down to two decimal places.

b) The State Treasury informs the Securities Trading Center about the decision to issue additional bonds immediately after the auction session. The notification includes: the bond code for additional issuance, the volume of additional issuance, the additional issuance interest rate, and the registration period for additional purchase. The notification time for additional bond issuance immediately after the auction session is carried out concurrently with the announcement of the bond issuance interest rate as prescribed in Clause 4 of Article 20 of this Circular.

c) The Securities Trading Center announces the issuance of additional bonds immediately after the auction session to the bidders through electronic data via the electronic bond auction system.

d) Conditions for participating in the registration for additional purchase of bonds immediately after the auction session:

- Being a bidder as prescribed by the Ministry of Finance;

- Winning a bid for any bond code at the auction session as prescribed in Clause 5 of Article 20 of this Circular.

đ) A bidder meeting the conditions prescribed in point d of this clause may choose to implement or not implement the registration for additional purchase of bonds immediately after the auction session. The bidder may register for additional purchase of bonds for themselves or for customers.

e) The volume of additional registration for each bidder (including for themselves and for customers) for each bond code shall not exceed the volume of additional issuance immediately after the auction session as announced by the State Treasury as prescribed in points b and c of this clause.

g) Information for registering additional purchase of bonds includes:

- The bond code for additional registration;

- The volume of additional registration corresponding to each bond code;

- Customer name.

h) Principles for determining the volume of additional issuance for bidders:

- In the case where the volume of additional registration is less than or equal to the volume of additional issuance immediately after the auction session as announced by the State Treasury as prescribed in point b of this clause, the volume of additional issuance for each bidder equals the volume of additional registration of that bidder.

- In the case where the volume of additional registration exceeds the volume of additional issuance immediately after the auction session as announced by the State Treasury as prescribed in point b of this clause, the allocation ratio of bonds to each bidder is calculated based on the ratio of the volume of additional registration of each bidder to the total volume of additional registration for each bond code.

- The volume of additional issuance for each bidder is rounded down to ten thousand (10,000) units of bonds.

i) Based on the information for registering additional purchase, the State Treasury's announcement of additional bond issuance, and the principles for determining the volume of additional issuance, the Securities Trading Center determines the volume of additional issuance for each bidder and notifies the State Treasury.

k) At the end of the bond issuance session, the Securities Trading Center announces the results of additional bond issuance to the members who registered for additional purchase of bonds immediately after the auction session through electronic data via the Electronic Bond Auction System.

Section 2

GUARANTEE OF BOND ISSUANCE

Article 23. Principles for Organizing Bond Issuance Guarantees

1. Bond issuance guarantees are organized with the participation of one or more bond issuance guarantee organizations (guarantee consortium).

2. The State Treasury selects the main guarantee organization to represent the guarantee consortium in negotiating and agreeing on the volume, term, interest rate, and guarantee fee for each bond issuance period according to this Circular.

3. Types of bonds issued under the guarantee method are those with terms of five years or longer as specified by the Ministry of Finance.

Article 24. Rights and Obligations of the Main Guarantee Organization

1. Rights

a) Acts as the sole legitimate representative of the rights and obligations of the guarantee consortium to negotiate and agree with the State Treasury regarding the bond issuance guarantee period;

b) Has the right to distribute the bonds of the guarantee issuance period according to the guarantee contract signed with the State Treasury;

c) Receives the guarantee fee based on negotiations and agreements with the State Treasury as stipulated in this Circular;

d) Has the right to select members of the guarantee consortium and determine the guarantee fee paid to these members.

2. Obligations

a) Is responsible for distributing the entire volume of bonds within the time specified in the guarantee contract signed with the State Treasury. In cases where the volume of bonds is not fully distributed to investors, the main guarantee organization shall be responsible for purchasing the remaining volume of bonds;

b) Executes payment for purchasing bonds according to Clause 1 of Article 35 of this Circular;

c) Reports to the State Treasury on the actual distribution situation of bonds on the day of bond purchase payment;

d) Performs all other obligations as prescribed in the principle contract and guarantee contract signed with the State Treasury.

Article 25. Conditions for Becoming the Main Guarantee Organization

1. Commercial banks and securities companies established and operating legally in Vietnam and permitted to provide security services according to relevant laws.

2. They must have a minimum subscribed capital equal to the statutory capital requirement as stipulated by relevant laws.

3. They must have a minimum operational period of three (03) years. In cases where an organization is formed through mergers, divisions, or consolidations, the operational period includes the time prior to such mergers, divisions, consolidations, or integrations.

4. Have experience in the field of security services.

5. Submit an application to become the main guarantee organization.

Article 26. Process for Selecting the Main Guarantee Organization and Guarantee Consortium

1. At least fifteen (15) working days before the planned date of organizing the bond issuance under the guarantee method, the State Treasury announces on the electronic news page of the Ministry of Finance, the State Treasury, and the Securities Trading Center about the plan to organize the bond issuance guarantee period and invites applications to participate as the main guarantee organization. The announcement includes:

a) Information about the bonds expected to be issued:

- Conditions and terms of the bonds (currency of issuance, term, face value, issuance date, issue date, payment date for bond purchase, expected interest payment date, maturity date, account for receiving bond purchase payments of the State Treasury, interest and principal repayment methods, bond code issued by the Vietnam Securities Depository);

- Expected volume of bonds to be issued.

b) Information about selecting the main guarantee organization:

- Conditions and standards for the main guarantee organization as stipulated in Article 25 of this Circular.

- Deadline, address, form, and method of submitting registration documents to become the main guarantee organization.

2. Organizations meeting the conditions and having the desire to become the main guarantee organization submit sealed registration documents according to the State Treasury's announcement. The registration documents include:

a) Application to become the main guarantee organization according to the form prescribed by the State Treasury;

b) Proposal for the bond issuance guarantee plan with the following basic contents:

- Analysis, assessment, and forecast of the bond market situation and the ability to issue bonds under the guarantee method;

- Implementation plan for the expected bond issuance guarantee period: proposed members of the guarantee consortium, implementation methods, time frame, expected volume, issuance interest rate, and proposal for the guarantee fee for bond issuance;

- Commitments of the main guarantee organization.

c) Documents proving eligibility to become the main guarantee organization, including:

- A copy of the Business License (a copy certified from the original, a certified copy by an authorized state agency, or an uncertified copy presented together with the original for verification);

- Audited financial statements for the three (03) most recent consecutive years;

- Documents proving activities in the field of security services.

3. Within five (05) working days from the end of the receipt of applications to become the main guarantee organization, the State Treasury establishes an opening committee to seal and evaluate and select one (01) main guarantee organization based on the following criteria:

a) Standards and conditions of the main guarantee organization as stipulated in Article 25 of this Circular;

b) Capacity, experience, and ability to assume the role of the main guarantor for the bond issuance period based on the proposals of the organization mentioned in point b, Clause 2 of this Article.

4. The result of selecting the main guarantee organization is announced in writing to the organizations that have registered and published on the electronic news page of the Ministry of Finance, the State Treasury, and the Securities Trading Center.

5. The State Treasury and the main guarantee organization agree on the content and sign the principle contract to implement the bond issuance guarantee period according to the model contract specified in Appendix 6 of this Circular.

6. Based on the principle contract signed with the State Treasury, the main guarantee organization selects members of the guarantee consortium.

7. Members of the guarantee consortium are organizations and individuals established, operating, or residing legally in Vietnam and permitted to invest in purchasing government bonds according to the law, including the Vietnam Social Security and the Vietnam Deposit Insurance Corporation.

8. Rights and obligations of the guarantee consortium members are implemented according to agreements with the main guarantee organization.

Article 27. Negotiation and Organization of Bond Issuance Guarantee

1. Within five (05) working days from the date of signing the principle contract with the State Treasury, the main guarantor organization shall submit to the State Treasury a notification letter regarding the list of members of the guarantee consortium participating in the bond issuance guarantee session according to the form specified in Section 1 of Appendix 7 of this Circular and the Agreement of the guarantee consortium signed by the guarantors according to the form specified in Section 2 of Appendix 7 of this Circular.

2. Based on the notification letter from the main guarantor organization, referring to the interest rate and guarantee fee framework prescribed by the Ministry of Finance, the State Treasury shall negotiate with the main guarantor organization regarding the volume, conditions, terms of the bonds (tenor, issue interest rate, issue date, payment date for bond purchase, bond selling price), guarantee fees, and other related matters.

3. Based on the negotiation results, on the day of bond issuance, the State Treasury shall sign a bond issuance guarantee contract with the main guarantor organization according to the contract model specified in Section 3 of Appendix 7 of this Circular. The bond issuance guarantee contract serves as the legal basis confirming the rights and obligations of the main guarantor organization; and the rights and obligations of the State Treasury as stipulated in this Circular.

4. At the latest on the working day immediately following the signing of the bond issuance guarantee contract, the State Treasury shall notify the Vietnam Securities Depository and the Stock Exchange of the guarantee result; simultaneously, it shall announce the guarantee result on the electronic information website of the Ministry of Finance, the State Treasury, and the Stock Exchange.

5. The amount of bond sales is determined according to the principle prescribed in Clause 5, Article 21 of this Circular.

6. The selling price of one (01) bond is determined according to the following principles:

a) As prescribed in Clause 6, Article 21 of this Circular for non-coupon bonds;

b) As prescribed in Clauses 7 and 8, Article 21 of this Circular for fixed coupon rate bonds;

c) As notified by the Ministry of Finance as prescribed in Clause 5, Article 4 of this Circular for floating coupon rate bonds.

Section 3

BOND DISTRIBUTION AGENT

Article 28. Principles of Bond Issuance through Agency Method

1. The State Treasury selects organizations meeting the conditions prescribed in this Circular to act as bond distribution agents and interest and principal repayment agents.

2. The State Treasury develops a plan for bond issuance through the agency method, reports to the Ministry of Finance for approval before organizing its implementation.

Article 29. Conditions for Acting as a Bond Distribution Agent

1. Commercial banks established and legally operating in Vietnam;

2. Having a minimum subscribed capital equal to the statutory capital as prescribed by relevant laws;

3. Having at least three years of operation;

4. Having a network ensuring bond issuance as required by the State Treasury for each issuance round;

5. Submitting a request to act as a bond distribution agent.

Article 30. Process of Selecting and Signing Agency Contracts for Bond Issuance

1. At least twenty (20) working days prior to organizing a bond issuance round through the agency method, the State Treasury shall announce on the electronic information websites of the Ministry of Finance, the State Treasury, and the Stock Exchange about the plan to organize bond issuance and invite registration to participate as distribution agents. The announcement content includes:

a) Information about the bonds expected to be issued:

- Bond conditions and terms (currency of issuance, tenor, time of issuance organization, issuance form, interest and principal repayment methods);

- Expected volume of bonds to be issued.

b) Information on selecting distribution agents:

- Agency form: sole distribution agent or both distribution agent and repayment agent;

- Conditions for agents as prescribed in Article 29 of this Circular;

- Registration form, deadline, location, and method for submitting application documents for distribution agent participation. Organizations participating in registration may submit their applications directly to the State Treasury or send them via guaranteed mail to the address specified in the State Treasury's announcement. The registration documents for becoming the main guarantor organization must be sealed.

2. Organizations meeting the conditions prescribed in Article 29 of this Circular and wishing to act as agents shall submit their registration documents to the State Treasury according to the announcement specified in Clause 1 of this Article. The registration documents include:

a) A registration form for acting as an agent according to the form specified in Section 1 of Appendix 8 of this Circular;

b) Proposals for organizing bond issuance plans with the following basic contents:

- Analysis, assessment, and forecast of the bond market situation and the possibility of issuing bonds through the agency method;

- Implementation plan for the bond issuance round through the agency method;

- Proposal for the agency fee for bond distribution and repayment.

c) Documents proving eligibility to become a bond distribution agent, including:

- A copy of the Business License (a copy certified from the original, a certified copy by an authorized state agency, or an uncertified copy presented together with the original for verification);

- Audited financial statements for the three (03) most recent consecutive years;

- Information on the operational network system and infrastructure to ensure bond issuance as required by the State Treasury.

d) The registration documents for participating in bond distribution agency sent to the State Treasury must be sealed according to current regulations.

3. Within five (05) working days from the end of the registration period for participating in bond distribution agency, the State Treasury shall establish a committee to open sealed documents and organize the evaluation and selection of one or more agents based on the following criteria:

a) Conditions for bond distribution agents as prescribed in Article 29 of this Circular;

b) Capability and ability of the registering organization to perform the role of a distribution agent;

c) Proposed agency fee level.

4. The results of the selection of bond distribution agents shall be notified in writing to the registering organizations and announced on the electronic information websites of the Ministry of Finance, the State Treasury, and the Stock Exchange.

5. Based on the registration dossier for participation as a bond issuance agent and the interest rate framework prescribed by the Ministry of Finance, the State Treasury conducts negotiations with the bond issuance agents regarding the volume, conditions, terms of the bonds (tenor, issue interest rate, issue date, payment date for bond purchase, bond selling price), agency fees, and other related matters.

6. Based on the negotiation results, the State Treasury signs an agency contract with the bond issuance agent according to the model contract stipulated in Point 2 of Appendix 8 of this Circular. The agency contract for bond issuance serves as the legal basis confirming the rights and obligations of the bond issuance agent and the State Treasury as prescribed in this Circular.

7. The amount of money from the sale of bonds shall be determined in accordance with the principle prescribed in Clause 5 of Article 21 of this Circular.

8. The selling price of one (01) bond shall be determined based on the following principles:

a) As prescribed in Clause 6, Article 21 of this Circular for non-coupon bonds;

b) As prescribed in Clauses 7 and 8, Article 21 of this Circular for fixed coupon rate bonds;

c) As notified by the Ministry of Finance as prescribed in Clause 5, Article 4 of this Circular for floating coupon rate bonds.

Article 31. Issuance of Bonds

1. The agent organizes the issuance of bonds under the conditions and terms of the bonds as specified in the agency contract signed with the State Treasury.

2. Within thirty (30) working days from the end of the bond issuance period through the agency method, the State Treasury reports to the Ministry of Finance the results of the bond issuance period in accordance with Clause 2 of Article 42 of this Circular.

Section 4

RETAIL SALE OF BONDS THROUGH THE STATE TREASURY SYSTEM

Article 32. Principles of Bond Issuance

1. The retail sale method of bonds is used to directly issue bonds to investors, including organizations and individuals both within and outside the country, as well as the Vietnam Social Security and the Vietnam Deposit Insurance Corporation.

2. The State Treasury directly organizes the issuance and repayment of principal and interest of bonds for each issuance period, or selects provincial or district State Treasuries subordinate to the State Treasury to do so.

3. The State Treasury develops a plan for issuing bonds through the retail method as prescribed in Clause 1 of this Article, and reports it to the Ministry of Finance for approval before implementation.

4. Bonds are issued in the form of certificates, ledger entries, or electronic data.

5. In cases where bonds are issued in certificate form, the State Treasury designs the template and organizes the printing of bond certificates.

6. The amount of money from the sale of bonds shall be determined in accordance with the principle prescribed in Clause 5 of Article 21 of this Circular.

7. The selling price of one (01) bond shall be determined based on the following principles:

a) As prescribed in Clause 6, Article 21 of this Circular for non-coupon bonds;

b) As prescribed in Clauses 7 and 8, Article 21 of this Circular for fixed coupon rate bonds;

c) As notified by the Ministry of Finance as prescribed in Clause 5, Article 4 of this Circular for floating coupon rate bonds.

Article 33. Bond Issuance Process

1. For bonds issued directly at the State Treasury

a) Based on the approved bond issuance plan by the Ministry of Finance, at least four (04) working days prior to the bond issuance date, the State Treasury announces information about the expected bond issuance period on the Ministry of Finance's, State Treasury's, and Stock Exchange's electronic information websites. The announcement includes:

- Expected issue date, payment date for purchase, interest payment date, and maturity date of the bonds;

- Expected volume and term of the bonds to be issued;

- Purchaser of the bonds;

- Nominal interest rate of the bonds;

- Form of the bonds;

- Method of interest and principal payment;

b) Organizations and individuals wishing to purchase bonds submit their purchase registration to the State Treasury;

c) Based on the purchase registration of organizations and individuals, the State Treasury requests the Ministry of Finance to issue a decision to issue bonds through the retail method;

d) Based on the bond issuance decision of the Ministry of Finance, the bond purchaser transfers the purchase money into the account designated by the State Treasury;

đ) Based on the confirmation of the transfer of purchase money for bonds, the State Treasury records the purchase money for bonds into the state budget in accordance with the Law on State Budget and processes the ownership confirmation procedures for the bond purchaser as prescribed.

2. For bonds issued at provincial or district State Treasuries subordinate to the State Treasury

a) At least ten (10) working days before the retail sale bond issuance period, the State Treasury announces detailed information about the issuance period on the Ministry of Finance's, State Treasury's, Stock Exchange's, and mass media electronic information websites. The announcement includes:

- Expected volume and term of the bonds to be issued;

- Purchaser of the bonds;

- Nominal interest rate of the bonds;

- Form of the bonds;

- Method of interest and principal payment;

- Time and location of the issuance organization.

b) In case of purchasing bonds in cash, the bond purchaser goes to the bond issuance location of the State Treasury to complete the payment procedure for purchasing bonds. The State Treasury bases the bond issuance procedure on the amount of money paid by the bond purchaser according to the conditions and terms of the bond issuance period.

c) In case of purchasing bonds by bank transfer, the bond purchaser transfers the money into the account of the State Treasury as notified by the State Treasury. Based on the transfer receipt and the bank's notification of receipt sent to the State Treasury, the State Treasury issues bonds according to the conditions and terms of the bond issuance period.

d) Based on the amount of money for bond purchases deposited into the State Treasury, the State Treasury completes the accounting entry into the state budget in accordance with the Law on State Budget and delivers the certificate (if issued in certificate form) or processes the ownership confirmation (if issued in ledger entry or electronic data form) to the bond purchaser.

đ) Based on Points a, b, and c of this clause and management requirements, the State Treasury guides the detailed procedures for issuing bonds through the retail method at provincial or district State Treasuries subordinate to the State Treasury.

Article 34. Retention, preservation, pledge, and transfer of bonds

1. The owner of the bond shall be responsible for preserving the bond issued through the retail method. In case of need, the bond owner may entrust the State Treasury at the place of issuance to retain and preserve the bond on their behalf. The State Treasury shall process the bond preservation procedures for customers and shall not charge a preservation fee.

2. Pledge and transfer of bonds issued through the retail method via the State Treasury system shall be carried out in accordance with the provisions of Clause 1, Article 8 of Decree No. 01/2011/NĐ-CP. In cases where the bonds are issued in registered form and are not registered and deposited at the Vietnam Securities Depository, the transfer shall be conducted at the State Treasury issuing location according to the guidance of the State Treasury.

Chapter IV

PAYMENT FOR BOND PURCHASE

Article 35. Payment for bond purchase

1. For bonds issued through auction or underwritten issuance:

a) By no later than 14:00 on the payment date for bond purchase announced by the State Treasury, successful bidders (for the auction method) and the main underwriting organization (for the underwritten method) must ensure that the full amount of the bond purchase (including the bond purchase amount of the bidder's clients and the combined underwriting organization members of the main underwriting organization) has been settled and credited to the account designated by the State Treasury. In cases where the client or combined underwriting organization member does not settle the bond purchase amount, the successful bidder or the main underwriting organization shall have the obligation to fully settle that bond purchase amount.

b) Investors purchasing bonds through successful bidders or the main underwriting organization may pay the bond purchase amount through the successful bidder, the main underwriting organization, or directly into the account designated by the State Treasury but must ensure compliance with the time limit specified in point a of this clause. If the bond investor transfers the bond purchase amount through the successful bidder or the combined underwriting organization member to the account designated by the State Treasury, the successful bidder or the main underwriting organization must record complete information about the bond code, bond owner, quantity of bonds, and total purchase amount of the bond owner.

c) The State Treasury shall send a confirmation document of the completion of the bond purchase payment of the successful bidder or the main underwriting organization to the Vietnam Securities Depository to implement the bond deposit.

2. For bonds issued through agency, based on the time stipulated in the agency contract and the quantity of bonds issued, the agent shall transfer the proceeds from selling the bonds into the designated account of the State Treasury.

3. For bonds issued through the retail method via the State Treasury system, the bond purchase amount can be paid in the following forms:

a) Payment in cash immediately upon purchasing the bond at the issuance location announced by the State Treasury;

b) Payment by bank transfer into the designated account of the State Treasury at the bond issuance location.

Article 36. Late payment interest on bond purchase money

1. The State Treasury shall collect late payment interest on bond purchase money in cases where the bond purchaser delays transferring the bond purchase money by one (01) day or more from the date specified for payment according to the notification of the State Treasury. The specific provisions regarding late payment interest on bond purchase money are as follows:

a) The amount of late payment interest payable shall be determined according to the following formula:

Where:

P = Amount of late payment interest

MG = Face value of the bond

N = Number of bonds issued but not paid on time

Lo = Overnight interest rate announced by the State Bank on the first day of delay (% per annum)

k = Number of times interest is paid annually for periodic interest-paying bonds; or equals one for non-periodic interest-paying bonds

n = Actual number of days delayed from the payment date

E = Actual number of days in a payment period during which the delay occurs for periodic interest-paying bonds; or equals the actual number of days in the year of issuance for non-periodic interest-paying bonds.

b) The State Treasury shall notify in writing the organization that has delayed payment of bond purchase money, specifying the amount of late payment interest, the payment deadline, and the account for depositing the late payment interest.

c) The organization that has delayed payment of bond purchase money must pay the late payment interest into the state budget according to the notification of the State Treasury. Late payment interest on bond purchase money shall be recorded in the state budget in accordance with the Law on State Budget and guiding documents.

2. For bonds issued through auction or guarantee methods, if the successful bidder/guarantor organization does not pay the bond purchase money within five (05) working days from the payment date, the State Treasury shall cancel the issuance results for the unpaid bond quantity and issue a written notice to the successful bidder/guarantor organization, the Securities Trading Center, and the Vietnam Securities Depository.

Chapter V

REGISTRATION, DEPOSIT, AND LISTING OF BONDS

Article 37. Registration and deposit of bonds

1. Bonds issued through auction or guaranteed issuance shall be centrally registered and deposited at the Vietnam Securities Depository.

2. Bonds issued through agency or retail sales shall be registered and deposited at the Vietnam Securities Depository upon request of the State Treasury for each issuance round.

3. Based on the notification of bond issuance results from the State Treasury and the Securities Trading Center, the Vietnam Securities Depository shall register the issued bonds. The registration of bonds shall be completed at the latest on the next working day after the payment date for bond purchase money.

4. The Vietnam Securities Depository shall send a notification of bond registration to the Securities Trading Center to implement the listing of bonds.

5. The Vietnam Securities Depository shall deposit bonds into the account of the owner after receiving the confirmation document of the completion of bond purchase money payment from the State Treasury.

6. The cancellation of registration of bonds for which payment of bond purchase money was not made shall be carried out by the Vietnam Securities Depository based on the notification of the cancellation of bond issuance results from the State Treasury.

Article 38. Listing and Trading of Bonds

1. Bonds issued through auction or issuance guarantee shall be listed and traded centrally at the Stock Exchange.

2. Bonds issued through agency or retail methods shall be listed and traded at the Stock Exchange upon the request of the State Treasury for each issuance round.

3. The Stock Exchange shall list bonds based on the registration bond notification document from the Vietnam Securities Depository. Bonds shall be listed no later than the next working day following the payment date for purchasing bonds.

4. Bonds shall be traded no later than the second working day (02) following the payment date for purchasing bonds after being listed.

5. The Stock Exchange shall delist bonds that have not completed payment for purchasing bonds based on the announcement of the State Treasury regarding the cancellation of the issuance results and the announcement of the Vietnam Securities Depository regarding the cancellation of the registration of such bonds.

Chapter VI

INTEREST AND PRINCIPAL PAYMENTS ON BONDS AND ISSUE FEES, BOND REPAYMENT

Article 39. Interest and Principal Payments on Bonds

1. The Central Budget shall ensure the source for paying interest and principal on bonds when due. In cases where the interest and principal payment date falls on a holiday or public holiday, the interest and principal payments will be made on the next working day.

2. The process of paying interest and principal on bonds issued through auction issuance and issuance guarantee:

a) By the 25th of each month, the Vietnam Securities Depository shall notify the State Treasury of the amount of interest and principal on bonds to be paid in the following month and the payment date.

b) By 11:30 on the interest and principal payment date, the State Treasury shall ensure that the full amount of interest and principal payments for the day is transferred and credited to the account notified by the Vietnam Securities Depository.

c) On the interest and principal payment date, the Vietnam Securities Depository, through its depositary members, shall transfer the interest and principal payments to the bondholders as determined on the final registration date.

d) If the State Treasury transfers the interest and principal payments to the account notified by the Vietnam Securities Depository later than specified in point b of Clause 2 of this Article, the State Treasury shall pay late interest according to the notification of the Vietnam Securities Depository. The amount of late interest shall be allocated and transferred to the accounts of bondholders in proportion to their holdings. The amount of late interest shall be determined according to the principles set forth in Article 36 of this Circular.

đ) If the State Treasury has transferred the interest and principal payments to the account notified by the Vietnam Securities Depository within the time specified in point b of Clause 2 of this Article but the Vietnam Securities Depository transfers the interest and principal payments to the accounts of bondholders after the interest and principal payment date, the Vietnam Securities Depository shall pay late interest to the bondholders. The amount of late interest shall be determined according to the principles set forth in Article 36 of this Circular.

3. The process of paying interest and principal on bonds issued through agency issuance:

a) For bonds registered and deposited with the Vietnam Securities Depository, the process of paying interest and principal on bonds shall be carried out as stipulated in Clause 2 of this Article.

b) For bonds not registered and deposited with the Vietnam Securities Depository, the payment of interest and principal on bonds shall be carried out according to the agency agreement between the State Treasury and the agency organization.

4. The process of paying interest and principal on bonds issued through retail sales through the State Treasury system:

a) For bonds registered and deposited with the Vietnam Securities Depository, the process of paying interest and principal on bonds shall be carried out as stipulated in Clause 2 of this Article.

b) For bonds not registered and deposited with the Vietnam Securities Depository, the payment of interest and principal on bonds shall be carried out according to the guidelines of the State Treasury.

1. The central budget ensures the source to pay fees for organizing issuance, fees for paying interest and principal of bonds, and fees for printing bond certificates (if any).

2. Fees for organizing issuance and paying interest and principal of bonds issued through guaranteed issuance and auction methods shall be paid to the following organizations:

a) 0.025% of the nominal value of bonds issued through the auction method shall be paid to the Securities Trading Center.

b) A maximum of 0.1% of the nominal value of bonds issued through the guaranteed issuance method shall be paid to the main guarantor organization. Based on this maximum fee, market conditions, and the complexity of the issuance guarantee period (volume, term of bonds issued), the State Treasury shall negotiate and agree with the main guarantor organization on the issuance guarantee fee to be paid to the guarantor organization.

c) 0.02% of the value of interest and principal of bonds actually settled through the Vietnam Securities Depository shall be paid to the Vietnam Securities Depository.

d) 0.004% of the nominal value of bonds issued shall be paid to the State Treasury.

3. Fees for organizing issuance and paying interest and principal of bonds issued through the retail method shall be paid to the following organizations:

a) 0.1% of the total nominal value of bonds issued, excluding printing costs of certificates (if any), shall be paid to the State Treasury for cases where bonds are issued through the State Treasury system at local levels; 0% of the total nominal value of bonds issued for cases where the central State Treasury directly issues bonds to organizations and individuals according to decisions of the Minister of Finance.

b) 0.02% of the value of interest and principal of bonds shall be paid to the Vietnam Securities Depository for cases where bonds are settled through the Vietnam Securities Depository.

4. Fees for organizing issuance and paying interest and principal of bonds issued through the agency method shall be paid to the following organizations:

a) A maximum of 0.1% of the nominal value of bonds issued through the agency method shall be paid to the issuing agent. Based on this maximum fee, market conditions, and the complexity of the issuance period (volume, term of bonds issued), and the content of the work (organizing issuance and payment of interest and principal of bonds), the State Treasury shall negotiate and agree with the issuing agent on the issuance and payment fees. This fee does not include printing costs (if any).

b) 0.02% of the value of interest and principal of bonds shall be paid to the Vietnam Securities Depository for cases where bonds are settled through the Vietnam Securities Depository.

5. Use of issuance and payment fees for interest and principal of bonds

a) The State Treasury may use the bond issuance fees for the following purposes:

- Costs serving the issuance and settlement of bonds through the State Treasury system (for cases of retail issuance);

- Costs for purchasing, constructing software and equipment for serving the issuance and settlement of bonds;

- Costs for regular maintenance, upgrading, and emergency repairs of machinery, equipment, and software;

- Costs for information advertising and propaganda about the issuance and settlement of bonds;

- Direct costs for each auction session and bond issuance guarantee;

- Costs for researching and developing the bond market;

- Costs for organizing training courses, conferences, seminars, surveys, and learning experiences for developing the government bond market;

- Costs for the annual conference summarizing bond issuance activities;

- Costs for unexpected and periodic rewards for organizations and individuals related to bond issuance activities according to regulations issued by the State Treasury;

- Office supplies;

- Other costs serving the issuance and settlement of bonds.

b) Auction fees for bonds are revenue of the Securities Trading Center, and fees for paying interest and principal of bonds are revenue of the Vietnam Securities Depository. The Securities Trading Center and the Vietnam Securities Depository have the responsibility to manage and use these fees in accordance with the financial mechanism of enterprises as prescribed by relevant laws.

Chapter VII

ACCOUNTING RECORDS, REPORTS AND DISCLOSURE OF INFORMATION

Article 41. Accounting Records

The State Treasury, Securities Trading Departments, Vietnam Securities Depository Center, and related organizations shall be responsible for organizing the accounting records of revenue from bond issuance, interest and principal payments on bonds, and issuance and payment fees for bonds as stipulated in this Circular in accordance with the State Budget Law, Accounting Law, and relevant guiding documents.

Article 42. Reporting Issuance Results

1. For bonds issued under the guaranteed issuance method, the State Treasury shall report to the Ministry of Finance on the issuance results no later than five working days after the end of the bond issuance period, including:

a) Volume and conditions, terms of the announced bond issuance;

b) Guarantee participation situation of members: number of participating members, volume, and registered interest rates of each member;

c) Issuance results: guarantor member, issuance volume, issuance interest rate, bond selling price.

2. For bonds issued under the agency and retail methods, the State Treasury shall report to the Ministry of Finance on the issuance results of the bond issuance period no later than thirty working days after the end of the issuance period, including:

a) Volume and conditions, terms of the announced bond issuance;

b) Issuance results: selected agents, issuance volume, issuance interest rate of the bond, and the situation of agency fee and issuance fee payments.

3. The form of the report is electronic mail or written document according to the requirements of the Ministry of Finance at each period.

Article 43. Reporting Bond Issuance and Interest and Principal Payment Situations

1. By the tenth day of each month, the State Treasury shall report to the Ministry of Finance on the bond issuance and payment situation of the previous month, including:

a) Total volume of bonds issued in the month classified by term and issuance method;

b) Total principal and interest of bonds paid in the reporting month;

c) Total principal and interest of bonds expected to be paid in the following month.

2. Quarterly, the Vietnam Securities Depository Center shall report to the Ministry of Finance and simultaneously send the State Treasury on the ownership situation of domestic and foreign investors' bonds and the holding situation of bonds on the account of the State Bank's Securities Trading Department according to the form specified in Appendix 9 of this Circular.

3. The form of the report is electronic mail or written document according to the requirements of the Ministry of Finance at each period.

Article 44. Reports of Auction Participants

1. Quarterly report:

a) Content of the report: Participation situation in the bond market of auction participants in the preceding quarter, forecasted investment demand for bonds and expectations of interest rate levels in the next three months. Report form at Appendix 10 of this Circular;

b) Deadline for submitting the report: No later than ten (10) days after the end of the quarter;

c) Form of the report: Electronic mail;

d) Place to submit the report: Email address as directed by the Ministry of Finance.

2. Annual report:

a) Content of the report: Follow the report form prescribed in Appendix 11 of this Circular, including the following main contents:

- Compliance with the conditions to maintain the status of an auction participant as stipulated in Clause 1, Article 14 of this Circular;

- Evaluation ranking contents of auction participants as stipulated in Clause 1, Article 15 of this Circular;

- Participation situation in the bond market of auction participants;

- Forecasted investment demand for bonds and expectations of interest rate levels in the next year;

b) Reporting period: From November 1 of the preceding year to October 31 of the current year;

c) Deadline for submitting the report: From November 1 to November 10 annually;

d) Form of the report: Written document;

đ) Place to submit the report: Financial Department of Banks and Financial Organizations, Ministry of Finance, 28 Tran Hung Dao Street, Hoan Kiem District, Hanoi.

Article 45. Disclosure of Information

1. The Stock Exchange shall disclose information about the auction results of bonds on its electronic news page on the issuance day, including the following contents:

a) Bond code;

b) Term;

c) Issuance date, maturity date, principal repayment date, interest payment date;

d) Auctioned amount, bid amount, winning bid amount, amount for payment of winning bonds;

đ) Lowest bid interest rate, highest bid interest rate, issuance interest rate, nominal interest rate;

e) Number of participants in the auction, total number of bidding registration forms.

2. The Stock Exchange shall disclose information about the additional bond issuance results immediately after the auction session on its electronic news page on the issuance day, including the following contents:

a) Bond code;

b) Term;

c) Issuance date, maturity date, principal repayment date, interest payment date;

d) Additional purchase registration volume, additional issuance volume, amount for payment of additional purchased bonds;

đ) Issuance interest rate, nominal interest rate;

e) Number of participants in the additional purchase registration.

3. For bonds registered at the Vietnam Securities Depository, no later than December 31 each year, the Vietnam Securities Depository shall cooperate with the Stock Exchange to disclose information about the principal and interest payment dates of bonds in the following year on the Stock Exchange's and Vietnam Securities Depository's electronic news pages. The disclosed information includes:

a) Bond code for principal and interest payments in the year;

b) Principal and interest payment dates of each bond code;

c) Final registration date of each bond code in the year.

4. For bonds issued through agency or retail methods and not registered at the Vietnam Securities Depository, no later than December 31 each year, the State Treasury shall disclose information about the principal and interest payments of bonds in the following year on its electronic news page.

Chapter VIII

RESPONSIBILITIES OF RELATED ORGANIZATIONS

Article 46. Responsibilities of the Ministry of Finance

1. To stipulate the framework interest rate for bond issuance during each period or each issuance round.

2. To guide and publicly announce specific rights and obligations of auction participants; criteria for evaluating and weightage of evaluation criteria for ranking auction participants during each period.

3. To select and publicly announce the list of auction participants during each period in line with the development of the bond market.

4. To evaluate and publicly announce the ranking results of auction participants.

Article 47. Responsibilities of the State Treasury

1. To develop and notify the planned bond issuance schedule for the entire year and each quarter according to the provisions of this Circular.

2. To organize bond issuance, interest and principal payment, issuance fee payment, and agent fee payment for interest and principal payment according to the provisions of this Circular.

3. To develop guidelines for retail bond issuance and bond payment through the State Treasury system, report to the Ministry of Finance for approval before promulgation.

4. To sign basic contracts, bond issuance guarantee contracts, and agency issuance contracts, and ensure that the main guarantor and agency issuer comply with the provisions of the contracts and this Circular.

5. To fully implement reporting and accounting systems related to bond issuance according to the provisions of this Circular.

6. To coordinate with the Vietnam Securities Depository and the Stock Exchange to disclose information according to the provisions of this Circular.

Article 48. Responsibilities of the Securities Trading Corporation

1. Establish bidding rules for bond issuance and price announcement rules for bond purchase/sale bids applicable to bidding members.

2. Organize bond issuance bidding in accordance with this Circular.

3. Provide necessary data and documents related to bond issuance bidding activities as stipulated in this Circular and/or upon request from the Ministry of Finance.

4. Retain and preserve information related to bond issuance bidding rounds in accordance with prescribed regulations.

5. Coordinate with the State Treasury, the Vietnam Securities Depository to announce information as stipulated in this Circular.

6. Implement listing or delisting of bonds in accordance with the provisions of this Circular.

Article 49. Responsibilities of the Vietnam Securities Depository

1. Carry out registration, custody or cancellation of registration and custody of bonds in accordance with the provisions of this Circular.

2. Ensure timely payment of interest and principal on bonds as specified in this Circular.

3. Provide the State Treasury with expected codes to be issued for initial bond issuances to inform bidding members and to announce on the securities trading corporation's electronic news page as stipulated in this Circular.

4. Provide necessary data and documents related to the management field as stipulated in this Circular and upon request from the Ministry of Finance (if any).

Chapter IX

IMPLEMENTING PROVISIONS

Article 50. Transitional Provisions

For bond issuance tranches through retail sales in 2015 before this Circular takes effect, registration and custody at the Vietnam Securities Depository and listing at the Securities Trading Corporation shall be carried out according to the State Treasury's proposal for each issuance round.

Article 51. Implementation Provisions

1. This Circular takes effect from September 15, 2015.

2. This Circular replaces the following guiding documents:

a) Circular No. 17/2012/TT-BTC dated February 8, 2012, of the Ministry of Finance guiding domestic government bond issuance;

b) Circular No. 203/2013/TT-BTC dated December 24, 2013, of the Ministry of Finance amending and supplementing certain articles of Circular No. 17/2012/TT-BTC dated February 8, 2012, guiding domestic government bond issuance.

Article 52. Organization of Implementation

1. The Director of the Ministry of Finance’s Office, the Director of the Department of Financial Institutions, the General Director of the State Treasury, the General Director of the Securities Trading Corporation, the General Director of the Vietnam Securities Depository, and the Heads of relevant units are responsible for implementing in accordance with the guidance provided in this Circular.

2. During the implementation process, if there are difficulties or obstacles, the State Treasury and relevant units must promptly report to the Ministry of Finance for review and specific guidance./.