Vietnam: Life insurers grab 90% of 30-year govt bonds in 2016
Source: Asia Insurance Review | Mar 2017
Life insurance companies were the major investors in government bonds last year, particularly long-term paper, snapping up nearly 90% of 30-year government bonds, worth more than VND21 trillion (US$925 million).
They also bought more than 41% of 20-year government bonds and 19% of 15-year bonds. In all, the life insurers poured more than VND29 trillion into long-term government bonds, reported Vietnam News citing statistics from the Insurance Supervisory Authority Department under the Ministry of Finance.
Last year, the State Treasury raised VND287.75 trillion via government bond sales, a 27% jump from the year before. The Finance Ministry has announced a target of raising VND250 trillion via bond sales this year.
As part of this goal, in 1Q2017, the Treasury plans to issue bonds worth VND65 trillion, comprising VND3 trillion in three-year bonds, VND30 trillion in five-year bonds, VND10 trillion in seven-year bonds, VND8 trillion in 15-year bonds and VND6 trillion in 30-year bonds.