Vietnam's Ministry of Finance has not decided on the timing for the $3-billion bond issuance plan. (Photo: www.sourcewire.com)
The Saigon Times newspaper cited a finance ministry source as saying that the ministry needs more time to ponder exchange rate risks.
As the U.S. dollar appreciates against the Vietnamese dong and interest rates on USD-denominated loans rise, dong-denominated debts will swell, weighing on the state budget.
The Vietnamese legislative body last month allowed the government to sell up to $3 billion in sovereign bonds in the international market, aiming to roll over domestic debts in the 2015-2016 period.
The greenback has strengthened against other currencies, fueled by speculation of an interest rate liftoff by the U.S. Federal by this year-end.
The U.S. Dollar Index, a measure of greenback value against six foreign currencies including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, increased 3.4% in November, the sharpest rise since January.
Meanwhile, appetite for government bonds at home has strengthened after the parliament permitted the government to resume issuing short-term securities. Some 45 trillion dong ($$2 billion) worth of three-year bonds is expected to be launched for sale in the last quarter of 2015, making the 250-trillion dong issuance target feasible this year.