Through the long process of formation and development, the bond market in Vietnam has been growing in both depth and scale, proving its role as a medium for long-term capital mobilization, in the economy, as well as addressing the shortfall of the State budget.
Generally, a bond is an instrument of indebtedness of the bond issuer to the holder; in which, the issuer owes the holders a debt and has an obligation to pay the holder interest depending on the terms of the bond. During the tenor of the bond, the holder may transfer its ownership of the bond to another investor. Or, the issuer may redeem the bonds either under, at or above the principal value of the bond.
Please contact our experts to receive the full article which features following points:
- Four types of bonds issued and traded on Vietnam’s bond market
- What shall foreign organizations receive from their investment in bonds in Vietnam?
- An estimation of the tax liability imposed on redemption of bonds over par in comparison using the above two tax treatments.