Decree No. 95/2018/ND-CP on the issuance, registration, custody, listing, and trading of government debt instruments on the securities market

DECREE

Regulations on the issuance, registration, custody, listing and trading of government debt instruments on the securities market

   Pursuant to the Government Organization Law dated June 19, 2015;

   Pursuant to the State Budget Law dated June 25, 2015;

   Pursuant to the Public Debt Management Law dated November 23, 2017;

   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;

   In accordance with the proposal of the Minister of Finance;

   The Government issues this Decree stipulating regulations on the issuance, registration, custody, listing, and trading of government debt instruments on the securities market; the powers and responsibilities of organizations and individuals related to the issuance and trading of government debt instruments.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates regulations on the issuance, registration, custody, listing, and trading of government debt instruments on the securities market; the rights and responsibilities of organizations and individuals related to the issuance and trading of government debt instruments.

Article 2. Applicability

2. Organizations and individuals related to the issuance, registration, custody, listing, and trading of government debt instruments on the securities market.

Article 3. Explanation of Terms

In addition to the terms defined in the Public Debt Management Law and the Securities Law, the terms in this Decree shall be understood as follows:

1. "Market maker" means an organization selected by the Ministry of Finance to perform the rights and obligations in the issuance and trading of government debt instruments in the domestic market as prescribed in this Decree.

2. "Single-price auction" means a method of determining the auction result where the issue interest rate is the highest winning bid rate applicable to all successful bidders.

4. "Standard debt instrument" means the standard bond codes chosen and announced by the issuing entity for market makers to fulfill their obligation to quote prices with a firm commitment.

5. "International bonds" are government bonds issued on the international capital market as prescribed in this Decree.

6. "Credit rating organization" means organizations with the function of evaluating and assigning credit ratings to countries and enterprises.

Article 4. Issuing Entity of Government Debt Instruments

1. The issuing entity of government debt instruments is the Ministry of Finance.

2. For government debt instruments issued in the domestic market, the Ministry of Finance organizes the issuance or authorizes the Treasury to organize the issuance and fulfills the obligations of the issuing entity as prescribed in this Decree.

Article 5. Purpose of Issuing Government Debt Instruments

1. Government debt instruments issued in the domestic market serve the purposes specified in Clause 1, Clause 2, and Clause 3 of Article 25 of the Public Debt Management Law.

2. For international bonds, the purpose of issuance is as specified in Clause 1 of Article 28 of the Public Debt Management Law.

Article 6. Subjects purchasing government debt instruments

1. Subjects purchasing government debt instruments issued in the domestic market:

a) Organizations and individuals within and outside Vietnam may purchase government debt instruments without volume limitations, except where otherwise provided by law;

b) Securities investment funds and voluntary pension funds may purchase government debt instruments through entrusting management organizations to carry out such purchases;

c) State financial funds outside the budget may purchase government debt instruments in accordance with relevant laws.

2. Subjects purchasing government debt instruments issued in the international market are organizations and individuals as prescribed by the issuing market.

Article 7. Rights and Obligations of Government Debt Instrument Holders

1. Rights of Government Debt Instrument Holders

a) Guaranteed full and timely payment of principal and interest on government debt instruments upon maturity;

b) Allowed to use government debt instruments for transfer, lending, gifting, inheritance, discounting, pledging, or other transactions as prescribed by law.

2. Tax obligations of government debt instrument holders on income derived from government debt instruments shall be carried out in accordance with tax laws.

Article 8. Payment of Principal and Interest on Government Debt InstrumentsDeputy ministers of ministerial-level agencies,

1. The Government ensures sources for the payment of principal and interest on government debt instruments at maturity as stipulated by the State Budget Law and the Public Debt Management Law.

2. The Ministry of Finance organizes the payment of principal and interest on government debt instruments in the domestic market to holders at maturity.

3. The Ministry of Finance transfers funds into the accounts of settlement agents to pay principal and interest on international bonds to holders at maturity.

Article 9. Utilization of Proceeds from Issuance of Government Debt Instruments

1. All proceeds from the issuance of government debt instruments in the domestic market are centralized into the central state budget in accordance with the State Budget Law, the Public Debt Management Law, and related legal documents.

2. All proceeds from the issuance of international bonds are utilized according to Article 28, Clause 1 of the Public Debt Management Law and the purposes of issuing international bonds approved by the Government under Article 31, Clause 1 of this Decree.

Article 10. Costs of Issuance, Registration, Custody, Payment, Repurchase, and Exchange of Government Debt Instruments

1. Expenses incurred during the issuance, registration, custody, payment, repurchase, exchange of government debt instruments, and related expenses are covered by the central state budget.

2. Expenses paid to organizations implementing tendering, guaranteeing, individual issuance, registration, custody, payment, repurchase, and exchange of government debt instruments in the domestic market shall be carried out in accordance with the guidelines of the Minister of Finance.

3. Expenses related to the issuance and trading of international bonds are covered by the central state budget according to agreements and contracts signed with participating partners in the issuance round and announcements by service providers.

Chapter II
ISSUANCE AND TRADING OF GOVERNMENT DEBT INSTRUMENTS IN THE DOMESTIC MARKET

Section 1
ISSUANCE AND TRADING OF TREASURY BILLS

Article 11. Conditions for Treasury Bills

1. Term of Treasury Bills:

a) The standard term of Treasury Bills is thirteen weeks, twenty-six weeks, or fifty-two weeks;

b) Other terms of Treasury Bills shall be determined by the Minister of Finance based on capital usage needs and market conditions but shall not exceed fifty-two weeks.

2. Denomination: Treasury Bills have a denomination of one hundred thousand (100,000) Vietnamese dong or a multiple thereof.

3. Currency: The currency for issuance and payment is the Vietnamese dong.

4. Form of Treasury Bills

a) Treasury Bills may be issued in the form of book-entry records or electronic data depending on the issuance method;

b) The entity organizing the issuance decides specifically on the form for each issuance period.

5. Issuance Interest Rate:

a) For Treasury Bills issued through auction, the issuance interest rate is determined by the State Treasury within the interest rate range set by the Ministry of Finance;

b) For Treasury Bills directly issued to the State Bank of Vietnam, the issuance interest rate is agreed upon between the Ministry of Finance and the State Bank of Vietnam as stipulated in Clause 3, Article 12 of this Decree.

6. Issuance Method:

a) Auction issuance of Treasury Bills is conducted according to the provisions of Clauses 1, 2, 3, 4, and 5 of Article 15 of this Decree.

The entity organizing direct issuance conducts the auction issuance of Treasury Bills or organizes the auction through the Trading Department of the State Bank of Vietnam in accordance with the regulations of the Ministry of Finance.

b) Direct issuance to the State Bank of Vietnam as provided for in Article 12 of this Decree.

7. Payment Method for Treasury Bills: Treasury Bills are paid in full principal and interest at maturity.

Article 12. Direct Issuance of Treasury Bills to the State Bank of Vietnam

1. In cases where the central government budget experiences temporary deficits, the Ministry of Finance shall lead the coordination with the State Bank of Vietnam to develop a proposal for the direct issuance of Treasury Bills to the State Bank of Vietnam to be submitted to the Prime Minister for decision. The issuance proposal includes the following main contents: purpose of issuance; volume, term, and form of Treasury Bills; denomination of Treasury Bills; issuance interest rate, expected issuance date; method and source of payment for Treasury Bills at maturity; registration, custody, listing, and trading of Treasury Bills (if applicable).

2. Based on the Prime Minister's decision, the Ministry of Finance shall coordinate with the State Bank of Vietnam regarding the volume, interest rate, and term for each issuance period. If the issuance date and maturity date of Treasury Bills do not fall in the same fiscal year, the provisions on advance borrowing from the State Bank of Vietnam as stipulated in Clause 1, Article 58 of the State Budget Law and Article 26 of the State Bank of Vietnam Law shall apply.

3. The interest rate for Treasury Bills directly issued to the State Bank of Vietnam is agreed upon between the Ministry of Finance and the State Bank of Vietnam, based on reference to the auction issuance interest rate of Treasury Bills, the interest rate of State Bank of Vietnam Treasury Bills, or the interest rate of Government Bonds with remaining terms equivalent at the nearest time point.

4. Based on the agreement on volume, interest rate, term, and issuance date, the State Treasury signs a direct sale contract for Treasury Bills to the State Bank of Vietnam, which specifies the conditions and terms of the issuance period including: volume, term, issuance interest rate, issuance date, selling price, payment date for purchase, maturity date, account for receiving purchase funds, registration, custody, listing, and trading of Treasury Bills (if applicable).

5. The State Treasury records the purchase funds of the State Bank of Vietnam into the state budget and pays the Treasury Bills at maturity.

Article 13. Registration, custody, listing, and trading of Treasury Bills

1. Treasury Bills issued through auction shall be registered, custodied, listed, and traded in accordance with the regulations on registration, custody, listing, and trading of Government Bonds.

Section 2
ISSUANCE AND TRADING OF GOVERNMENT BONDS

Article 14. Conditions and terms of Government Bonds

1. Tenor of Government Bonds:

a) The standard tenor of Government Bonds is three years, five years, seven years, ten years, fifteen years, twenty years, thirty years, and fifty years.

b) Other tenors of Government Bonds shall be decided by the Minister of Finance for each period.

2. Issuance face value: Government Bonds have a face value of one hundred thousand (100,000) Vietnamese dong or multiples thereof.

3. Currency of issuance and payment is the Vietnamese dong. In cases where Government Bonds are issued in the domestic market in foreign currency, the currency of issuance and payment shall be freely convertible foreign currency as stipulated in Article 22 of this Decree.

4. Form of Government Bonds

a) Government Bonds may be issued in the form of certificates, book-entry records, or electronic data depending on the issuance method.

b) The issuing entity decides the specific form of Government Bonds for each issuance round.

5. Interest rate of Government Bonds

a) Government Bonds are issued at a fixed interest rate, floating interest rate, or discount rate as announced by the National Treasury.

b) The issuance interest rate of Government Bonds is determined by the National Treasury within the interest rate range prescribed by the Ministry of Finance.

6. Method of payment of principal and interest of Government Bonds

a) Interest is paid periodically every six months or annually, or once on the maturity date together with the principal repayment. The issuing entity announces the specific method of interest payment for each issuance round.

b) Principal is paid once on the maturity date or prepaid according to the announcement of the issuing entity for each issuance round.

7. Issuance method: Government Bonds are issued through auction issuance, issuance guarantee, and individual issuance as stipulated in Articles 15, 16, and 17 of this Decree.

Article 15. Auction Issuance of Government Bonds

1. Auction issuance is a method of selling Government Bonds through an auction regarding interest rates for bond buyers.

2. Principles of organizing auctions:

a) Maintaining confidentiality of all bidding information of participants.

b) Ensuring transparency and equality of rights and obligations among participants.

3. Participants in the auction: Market makers as stipulated in Section 4 Chapter II of this Decree. Other entities specified in Clause 1 of Article 6 of this Decree purchase Government Bonds through market makers via auction methods.

4. Forms of auction

The auction of Government Bonds is conducted in one of the following two forms:

a) Competitive interest rate auction;

b) Combined competitive and non-competitive interest rate auction. In the case of an auction organized under this form, the total volume of bonds issued without competitive interest rates must not exceed thirty percent of the total volume of bonds tendered in the auction session.

6. The issuing entity directly organizes the auction of Government Bonds or organizes the auction through the Stock Exchange in accordance with the regulations of the Ministry of Finance.

1. Guarantee for issuance is a method of selling government bonds through a guarantee issuance consortium consisting of:

a) The main guarantor organization and/or co-main guarantor organizations;

b) The issuance guarantor organization and/or co-issuance guarantor organizations.

2. Conditions to be a main guarantor organization

a) Financial organizations with the function of providing securities guarantee services in accordance with the provisions of the law, established and operating legally in Vietnam;

b) Having experience in the field of securities guarantee;

c) Having a feasible guarantee issuance plan that meets the requirements of the issuing entity for each issuance period.

3. Process of guaranteeing the issuance of government bonds

b) The State Treasury provides basic information about the issuance period for the main guarantor/co-main guarantor organization and the guarantee consortium to seek investors. The content provided includes: expected issuance volume, expected issuance term, interest rate orientation for each issuance term, expected issuance time.

c) The main guarantor/co-main guarantor organization and members of the guarantee consortium compile the demand for purchasing government bonds from investors including: expected purchase volume, certain purchase volume, and expected interest rate for each term, to be reported to the State Treasury.

d) The State Treasury negotiates with the main guarantor/co-main guarantor organization regarding the volume, conditions, and terms of the bonds (term, issue date interest rate, payment date for bond purchase price, bond sale price), guarantee fees, and other related matters.

đ) Based on the negotiation results with the main guarantor/co-main guarantor organization, the State Treasury signs a guarantee issuance contract with the main guarantor/co-main guarantor organization to sell the bonds. The guarantee issuance contract is the legal basis confirming the rights and obligations of the main guarantor/co-main guarantor organization; the rights and obligations of the State Treasury.

e) The main guarantor/co-main guarantor organization and the guarantee consortium are responsible for distributing the bonds according to the commitments in the guarantee contract. In case the bonds are not fully distributed, the main guarantor/co-main guarantor organization and the guarantee consortium are responsible for purchasing the remaining volume.

g) At the end of the guarantee issuance period, the State Treasury issues government bonds to investors based on the list provided by the main guarantor/co-main guarantor organization.

1. Individual issuance is a method of directly selling government bonds to individual buyers.

2. The State Treasury develops an individual issuance plan for government bonds and reports it to the Ministry of Finance for approval. The individual issuance plan includes the following basic contents:

a) Purchaser of the bonds;

b) Expected issuance volume;

c) Term of the bonds;

d) Expected interest rate;

đ) Expected issuance time.

3. Based on the approved individual issuance plan by the Ministry of Finance, the State Treasury issues a decision on the issuance of bonds and directly organizes the issuance and repayment of principal and interest of the bonds for each issuance period.

1. Registration and custody:

a) Government bonds shall be centrally registered and custodied at the Vietnam Securities Depository Center upon the request of the State Treasury.

b) Based on the issuance result announcement from the State Treasury, the Vietnam Securities Depository Center shall register Government bonds.

c) Based on the confirmation document of the State Treasury regarding the completion of payment for bond purchases, the Vietnam Securities Depository Center shall custody the bonds in accordance with securities laws.

2. Listing of bonds:

a) Government bonds shall be centrally registered and custodied at the Vietnam Securities Depository Center and listed and traded at the Stock Exchange, except for foreign currency bonds.

b) Based on the registration announcement of the Vietnam Securities Depository Center and the request of the State Treasury, the Stock Exchange shall list Government bonds in accordance with securities laws.

Article 19. Trading of Government Bonds

1. Government bonds shall be traded on the securities market through matching orders and/or negotiated transactions in accordance with securities laws and trading regulations approved by competent authorities.

2. Government bonds shall be traded on the securities market in the following forms:

a) Ordinary buying and selling;

b) Buy-back and combined buy-sell;

c) Other types of transactions as prescribed by securities laws.

3. The buy-back and combined buy-sell transactions of Government bonds stipulated in point b, Clause 2 of this Article shall be carried out according to the following principles:

a) The term of the transaction shall not exceed one year;

b) The buyer and seller shall negotiate and sign a transaction contract including the following basic contents: quantity; interest rate (or bond price); term; collateral; risk mitigation ratio; rights and responsibilities of the parties - handling collateral in case the parties fail to make payments as agreed.

4. The State Bank of Vietnam shall guide the classification of debts and the establishment of risk reserves for credit organizations when conducting buy-back and combined buy-sell transactions of Government bonds on the securities market.

5. The Minister of Finance shall provide guidance on trading of Government bonds on the securities market as prescribed in this Decree and securities laws.

Article 20. Issuance of Government Bonds to Ensure Market Liquidity

1. Conditions for Issuance:

a) When a market maker fulfills the obligation of firm quotation as prescribed in point c, Clause 2, Article 27 of this Decree but does not have enough Government bonds for trading.

b) The volume of Government bonds issued to ensure market liquidity at all times must fall within the annual issuance limit of Government bonds approved by competent authorities.

c) A market maker must deposit mandatory collateral at the State Treasury as prescribed in Clause 2 of this Article.

2. Implementation procedures.

a) When there is a need for bonds to fulfill the obligation of firm quotation, the market maker requests the State Treasury to issue bonds to ensure liquidity, specifying the code of Government bonds and the requested support volume, and the duration of support.

b) Based on the market maker's request, the State Treasury will notify the market maker to sign a liquidity support contract and deposit collateral in cash at the State Treasury, the amount of which corresponds to the expected issuance volume calculated based on market prices plus a risk mitigation ratio on the value of the issued bonds.

c) After receiving the full collateral, the State Treasury shall issue Government bonds to the market maker. The issuance period for bonds to ensure liquidity shall not exceed 28 days from the date of issuance, including any extension period (if applicable).

d) Upon expiration of the liquidity support contract, the market maker shall return the Government bonds to the State Treasury, and the State Treasury shall refund the collateral to the market maker after deducting the contract implementation costs. The contract implementation costs paid by the market maker to the State Treasury shall be recorded as government revenue.

đ) In case the market maker fails to return the bonds upon expiration of the contract (including any extension period), the State Treasury shall settle the contract and convert the entire collateral into the issuance of Government bonds for the state budget.

e) The Minister of Finance shall provide detailed guidance on the bond issuance price, risk mitigation ratio, contract implementation costs, the issuance limit of the State Treasury to support liquidity for market makers, the basic contents of the liquidity support contract, and the steps for issuing Government bonds to ensure market liquidity as prescribed in this Decree.

Article 21. Green Bonds

1. Green bonds are a type of government bond issued for investment in projects related to environmental protection activities as prescribed in the Law on Environmental Protection (green projects) and included in the list of projects allocated state budget investment funds as prescribed in the Law on State Budget Investment and the Law on the State Budget.

a) Purpose of issuance;

b) Volume of issuance;

c) Conditions and terms of the bonds;

d) Bond purchasers;

đ) Issuance methods;

e) Registration, custody, listing, and trading;

g) List of projects using funds from bond issuance.

3. The conditions, terms, organization of issuance, registration, custody, listing, and trading of green government bonds shall be implemented in accordance with the provisions of Articles 14, 15, 16, 17, 18, and 19 of this Decree.

Article 22. Foreign Currency Bonds

1. Foreign currency bonds are a type of government bond issued domestically in freely convertible foreign currencies in accordance with the proposal approved by the Prime Minister.

a) Purpose of issuance;

b) Volume of issuance;

c) Conditions and terms of the bonds: Tenor, issue face value; currency of issuance and payment of the bonds; issue interest rate;

d) Bond purchasers;

đ) Registration, custody, and trading;

Article 23. National Construction Debentures

1. National construction debentures are a type of government debt instrument with conditions and terms of government bonds as prescribed in Article 14 of this Decree.

2. Based on the capital-raising needs of the state budget, the Ministry of Finance shall develop a plan for issuing national construction debentures to be reported to the Government for submission to the Standing Committee of the National Assembly for consideration and decision. The issuance plan for national construction debentures includes the following main contents:

a) Purpose of issuance;

b) Conditions and terms of national construction debentures;

c) Expected issuance time;

d) Principal and interest repayment method;

đ) Expected issuance volume;

e) Purchasers and implementing organizations.

3. Based on the approved issuance plan by the Standing Committee of the National Assembly, the Ministry of Finance shall organize the issuance of national construction debentures.

4. The organization of issuance, registration, custody, listing, and trading of national construction debentures shall be carried out in accordance with the provisions of Articles 15, 16, 17, 18, and 19 of this Decree.

Section 3
PURCHASE AND SWAP OF GOVERNMENT DEBT INSTRUMENTS

Article 24. Repurchasing Government Debt Instruments

a) Purpose of repurchase;

b) Quantity and conditions, terms of the debt instruments expected to be repurchased;

c) Source of funds for repurchase;

d) Method of repurchase;

đ) Expected time frame for organizing the repurchase and related costs.

2. The repurchase of government debt instruments must ensure transparency and be conducted according to market principles.

3. Government debt instruments may be repurchased through negotiation or auction methods. The steps for organizing the repurchase of government debt instruments in the domestic market shall be carried out in accordance with the guidelines of the Minister of Finance.

Article 25. Swapping Government Debt Instruments

a) Purpose of swap;

b) Quantity, conditions, terms of the debt instruments expected to be swapped;

c) Method of swap;

d) Expected time frame for organizing the swap and related costs.

2. The swap of government debt instruments must ensure transparency and be conducted according to market principles.

4. Government debt instruments may be swapped through negotiation or auction methods. The steps for organizing the swap of government debt instruments in the domestic market shall be carried out in accordance with the guidelines of the Minister of Finance.

Section 4
MARKET MAKER

Article 26. Market Maker

1. Conditions for registering as a market maker

a) Being a commercial bank or securities company established and legally operating in Vietnam;

b) Having actual paid-in capital on audited financial statements of the three consecutive years preceding the year of registration as a market maker not less than the minimum charter capital stipulated by relevant laws;

c) Having at least three years of operation. In cases where an organization is formed through merger, division, or consolidation, the period of operation includes the time before such merger, division, or consolidation;

d) Participating in the primary market purchase of government debt instruments and trading in the secondary market with a minimum volume specified by the Ministry of Finance for each period.

2. Documents for new registration as a market maker

a) Application form to become a market maker in accordance with Model No. 01 prescribed in the Appendix issued together with this Decree.

b) Copy of Business Registration Certificate.

c) Audited financial reports of the three consecutive years preceding the year of registration as a market maker, prepared by an independent auditing organization legally operating in Vietnam.

d) Report on participation in the primary and secondary markets in accordance with Model No. 02 in the Appendix issued together with this Decree.

3. Process and procedures for recognizing new market makers

a) From November 1 to November 10 each year, organizations meeting the conditions and wishing to become market makers shall submit one set of documents as prescribed in Clause 2 of this Article to the Ministry of Finance.

b) Within five working days from the date of receipt of the documents, the Ministry of Finance shall check the completeness and validity of the documents and notify in writing about any required supplementary documents (if any).

c) After receiving all the documents, based on the conditions stipulated in Clause 1 of this Article, the Ministry of Finance shall select and announce the market makers before December 31 each year. If the documents do not meet the conditions, the Ministry of Finance shall issue a written notification specifying the reasons.

4. Conditions for maintaining status as a market maker:

a) Meeting the conditions stipulated in Clause 1 of this Article.

b) Fulfilling all obligations of a market maker as prescribed in Clause 2 of Article 27 of this Decree.

5. Process for evaluating the maintenance of market maker status

a) From November 1 to November 10 each year, market makers shall submit to the Ministry of Finance a report on their participation in the market during the evaluation period from November 1 of the previous year to October 31 of the current year in accordance with Model No. 03 in the Appendix issued together with this Decree.

b) Based on the reports of the market makers and the database of the Ministry of Finance, the Ministry of Finance shall evaluate the conditions for maintaining market maker status and announce the results before December 31 each year. For market makers who do not meet the conditions, the Ministry of Finance shall issue a written notification specifying the reasons.

6. Ranking of market makers:

a) Annually, based on participation results in the primary and secondary markets and the weightage of each criterion in each period, the Ministry of Finance shall rank and announce the ranking results of market makers.

b) Based on the development situation of the market, the Ministry of Finance shall use the ranking evaluation results to maintain the status of market makers.

Article 27. Rights and Obligations of Market Maker

1. The market maker shall have the following rights:

a) Being the sole entity eligible to participate in issuance, repurchase, and swap sessions of government debt instruments through auction methods;

b) Being prioritized to act as the primary guarantor for government bond issuance and national construction bonds through guarantee methods;

c) Participating in regular exchanges regarding bond issuance work and policy orientations for developing the government bond market during each period with the Ministry of Finance;

d) Having the State Treasury issue government bonds to ensure liquidity as prescribed in Article 20 of this Decree;

đ) Being prioritized to participate in agreement repurchase or swap sessions of government debt instruments according to announcements by the Ministry of Finance.

2. The market maker shall have the following obligations:

a) Participating in bidding at issuance auctions of government debt instruments according to announcements by the Ministry of Finance during each period;

b) Annually participating in purchasing (for itself or for customers) government debt instruments on the primary market and engaging in transactions on the secondary market with a minimum volume as announced by the Ministry of Finance during each period;

c) Fulfilling the obligation to provide daily firm bid and ask prices for standard debt instruments according to announcements by the Ministry of Finance during each period.

d) Paying the full amount due for purchasing government debt instruments on time;

đ) Implementing annual and semi-annual reporting systems according to Form No. 03 and Form No. 04 attached to this Decree.

Article 28. Removal of Market Maker Status

1. A market maker may be considered for removal from membership status under any of the following circumstances:

a) Having their business license revoked or withdrawn;

b) Temporarily ceasing operations, being dissolved, or declared bankrupt;

c) Being subject to special supervision in business operations according to announcements by competent state authorities;

d) Submitting a request not to be a market maker;

đ) Failing to meet the conditions for maintaining market maker status as stipulated in Clause 4 of Article 26 of this Decree.

2. An organization removed from market maker status shall be notified in writing and information published on the Ministry of Finance's electronic news website.

3. An organization removed from market maker status as specified in points d and đ of Clause 1 of this Article shall not submit an application to become a market maker again within two years from the date of removal.

Article 29. Changes to Be Notified to the Ministry of Finance

Within ten working days from the date of any change in the following contents, the market maker must notify the Ministry of Finance in writing:

1. Business license revoked or withdrawn.

2. Split, division, merger, conversion, temporary cessation of business, dissolution, bankruptcy.

3. Failure to meet financial safety indicators as prescribed by specialized laws.

4. Business operations being subject to special supervision by competent state authorities according to relevant laws.

Chapter III
ISSUANCE AND TRADING OF GOVERNMENT BONDS ON THE INTERNATIONAL CAPITAL MARKET

Article 30. International Bond Issuance Plan

2. The international bond issuance plan shall comply with the provisions of Clause 3, Article 28 of the Public Debt Management Law and the following contents:

a) Forecasting the selection method for organizations or consortia managing the issuance, legal advisory services, related agents, and the issuance organization plan for international bonds;

b) Forecasting the costs related to the issuance of international bonds.

Article 31. Approval of the International Bond Issuance Plan

1. The Government shall issue a Resolution approving the issuance policy for international bonds based on the international bond issuance plan, including the following main contents:

a) Purpose of issuance;

b) Issuance volume, currency of issuance, and issuance term;

c) Issuance market;

d) Tax policy for income from principal and interest of bonds held by bondholders;

đ) Forecasting the costs related to the issuance;

e) Forecasting the selection method for organizations or consortia managing the issuance, legal advisory services, and related agents;

g) Responsibilities of the Ministry of Finance and relevant organizations and individuals.

2. Based on the approved international bond issuance policy by the Government, the Prime Minister shall issue a decision on the issuance of international bonds for each issuance, including the following main contents:

a) Issuance volume, issuance term, and issuance method;

b) Forecasting the issuance interest rate range;

c) Forecasting the registration, custody, listing, and trading of bonds;

d) Issuance date.

Article 32. Issuance Documents for International Bonds

1. The issuance documents for international bonds are legal documents prepared by the Ministry of Finance in collaboration with domestic and international legal advisors and relevant agencies according to Vietnamese laws and the laws of the issuance markets.

2. The issuance documents include the following basic documents:

a) Prospectus;

b) Guarantee contracts for issuance;

c) Legal advisory contracts;

d) International bond purchase and sale contracts;

đ) Agency agreements, including:

- Printing agent: the organization selected to print bonds, prospectuses, and other related documents;

- Listing agent: the organization selected to handle the registration and listing procedures for the issuer's bonds on appropriate stock exchanges in accordance with the listing regulations;

- Financial and settlement agent: the organization selected to act on behalf of the issuer to pay principal and interest to investors and manage the list of bondholders for the issuance;

- Transfer agent: the organization selected to maintain ownership reports, cancel and issue certificates, and handle issues related to lost, damaged, or stolen certificates;

- Custodian agent: the organization designated by bondholders to represent their interests and ensure compliance with the terms of the bonds;

- Depository organization: the organization that accepts deposits, stores, confirms transfers, and transfers bonds in the market.

e) Legal opinions;

g) Other related documents.

Article 33. Issuance of International Bonds

1. The Ministry of Finance shall take the lead and coordinate with relevant ministries, sectors, and organizations to issue bonds in accordance with the Government's approved policy and the Prime Minister's decision for each issuance.

2. Based on actual circumstances and relevant legal provisions, the Ministry of Finance shall organize the issuance of bonds through several basic steps as follows:

a) Selecting management organizations or combinations of management organizations that are one or more international financial or investment banking institutions with experience to manage the issuance period;

b) Selecting domestic and foreign legal advisors with experience to provide domestic legal advice and international legal advice to the Ministry of Finance and the management organization or combination of management organizations;

c) Preparing issuance documents: The Ministry of Finance shall take the lead and coordinate with domestic legal advisors, international legal advisors, and related agencies to prepare issuance documents in compliance with Vietnamese laws and international laws and market practices at the issuance market;

d) National credit rating assessment: The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to work with credit rating organizations to confirm the national credit rating coefficient and credit rating level for the proposed bond issuance;

đ) Promoting issuance: Promotion activities for the issuance of international bonds shall be carried out according to the requirements of each issuance method. The Ministry of Finance shall coordinate with the management organization or combination of management organizations to promote international bonds to contact international investors before officially announcing the issuance of international bonds;

e) Issuing: The Ministry of Finance shall decide the conditions and terms of issuing international bonds based on consulting opinions from the management organization or combination of management organizations, in line with market conditions and principles outlined in the approved international bond issuance proposal by the Government and the Prime Minister. The interest rate for each issuance period of international bonds shall be determined by the Ministry of Finance within the framework prescribed by the Prime Minister at Point b Clause 2 Article 31 of this Decree;

g) Receiving capital: The Ministry of Finance shall organize the receipt of funds from the issued international bonds in accordance with signed agreements;

h) Completing issuance transactions: After receiving payment for the sold international bonds, the Ministry of Finance shall complete and sign legal documents to conclude the transaction in compliance with the laws of the issuance market; report to the Prime Minister the results of the issuance.

Article 34. Registration, Custody, and Listing of International Bonds

1. The Ministry of Finance shall select units to provide registration and custody services for international bonds.

2. International bonds shall be listed pursuant to the Prime Minister's Decision.

Article 35. Updating Information

The Ministry of Finance shall be responsible for monitoring international bond transactions and coordinating with related units to provide updated information about Vietnam's economic situation to foreign investors in accordance with international practices after issuance.

Chapter IV
DUTIES AND LIMITS OF STATE MANAGEMENT

Article 36. Ministry of Finance

1. Guide the steps for organizing the issuance, trading, repurchasing, swapping, and settlement of government debt instruments and related costs; bond issuance operations to ensure liquidity for market makers as stipulated in this Decree.

2. Take the lead in drafting proposals for the issuance of construction bonds for the country, green government bond issuance proposals, and international bond issuance proposals to be submitted for approval by competent authorities.

3. Decide on the framework for the issuance interest rate of government debt instruments in the domestic market.

4. Organize the implementation of the issuance of government debt instruments and international bonds in accordance with this Decree.

5. Select and announce the list of market makers in accordance with this Decree.

6. Implement restructuring operations of the government debt portfolio through repurchasing and swapping government debt instruments.

8. Summarize, monitor, and implement reporting systems regarding the issuance of government debt instruments.

Article 37. State Bank of Vietnam

1. Coordinate with the Ministry of Finance in organizing the issuance of Treasury bills in accordance with this Decree.

2. Guide credit organizations to classify debts and set aside risk provisions when conducting transactions to buy back and sell combined with repurchase government bonds on the securities market in accordance with this Decree.

3. Coordinate with the Ministry of Finance in developing proposals for issuing and organizing the issuance of international bonds.

4. Provide statistical data and documents within its management scope regarding foreign exchange reserves, balance of payments, monetary policy, credit, interest rates, and work to prepare for national credit rating and issuance of international bonds.

Article 38. Ministry of Justice

Provide legal opinions for the issuance of international bonds in accordance with the law.

1. Coordinate with the Ministry of Finance in developing proposals for issuing and organizing the issuance of international bonds.

2. Provide statistical data and documents within its management scope regarding macroeconomics at the request of the Ministry of Finance and coordinate working with credit rating organizations to rank national credit ratings and prepare for the issuance of international bonds.

3. Coordinate with the Ministry of Finance to develop proposals for issuing green government bonds and select a project portfolio using funds from the issuance of green government bonds from the list of projects under the approved public investment plan.

Article 40. Relevant Ministries and Sectors

Provide necessary statistical data and documents related to their management areas at the request of the Ministry of Finance and coordinate working with credit rating organizations to rank national credit ratings and prepare for the issuance of international bonds in accordance with Chapter III of this Decree.

Article 41. National Treasury

1. Organize the issuance, payment of principal and interest on government debt instruments in the domestic market in accordance with this Decree.

2. Implement accounting entries for the issuance, payment of principal and interest on government debt instruments, and market maker support operations in the domestic market in accordance with this Decree.

3. Implement the repurchase and swap of government debt instruments in the domestic market in accordance with this Decree.

Chapter V
IMPLEMENTING PROVISIONS

Article 42. Effective Date

1. This Decree takes effect from July 1, 2018.

2. The rights and obligations of market makers stipulated in this Decree shall be implemented from 2019.

3. Repeal the provisions in Section 1 Chapter II, Section 1 Chapter III, and other relevant provisions concerning government bonds in Decree No. 01/2011/NĐ-CP dated January 5, 2011 of the Government on the issuance of government bonds, government-guaranteed bonds, and local government bonds.

Article 43. Implementation

1. The Ministry of Finance shall provide guidance on the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, and chairpersons of provincial people's committees directly under the central government are responsible for implementing this Decree./.