Without strong reform of the bond market, it will be difficult to revive domestic enterprises.

ANTD.VN - Dr. Le Xuan Nghia believes that Vietnam's GDP growth still relies mainly on FDI enterprises. Without strong reforms in the corporate bond market - a medium and long-term capital mobilization channel - it will be difficult for us to revive domestic enterprises.

When the real estate market is booming, corporate bonds will go up.

Dr. Le Xuan Nghia said that the corporate bond market is still facing many difficulties and challenges. The expert said that this market clearly reflects the structure of the Vietnamese economy. Specifically, GDP growth in Vietnam is high but mostly based on exports - an area where FDI enterprises account for the majority. Meanwhile, domestic enterprises only contribute a very small part to exports and are mainly enterprises in the agriculture, forestry and fishery sectors.

In addition, the growth driver of GDP also comes from investment, but like exports, Vietnam's investment sector also comes mainly from FDI enterprises. Another driver, retail, is in a similar situation.

“In other words, Vietnam’s economic growth relies mainly on the FDI sector. Without strong reforms in the corporate bond market – a channel for mobilizing medium and long-term capital for businesses – in terms of both quantity and technology, it will be difficult for us to revive domestic businesses. At that time, economic growth can only continue to ‘rely’ on FDI enterprises,” said Dr. Le Xuan Nghia.

The corporate bond market still relies mainly on banks and real estate.

Regarding the current state of the corporate bond market, according to the expert, the structure of participants in this market is mainly real estate enterprises and banks. However, capital mobilization through the corporate bond channel of banks mainly serves the purpose of increasing Tier 2 capital, thereby increasing mobilization and lending.

Meanwhile, real estate businesses are facing difficulties, which has affected the corporate bond market. Meanwhile, other domestic businesses are seriously lacking capital but cannot participate in the corporate bond market because the term is short (about 3 years) but the interest rate is very high.

“If TPDN continues to rely solely on real estate, next year will still be difficult. This is also an issue we must be vigilant about,” said Mr. Nghia.

According to the expert, to solve the current difficulties in the corporate bond market, the first thing to do is to resolve the large real estate projects that are being "shelved" in the provinces and cities. Only when the real estate market improves, will the corporate bond market follow suit.

Besides, according to him, it is necessary to attract more foreign investors to participate in the corporate bond market.

The market is growing tighter and more sustainable.

According to experts, changes in the revised Securities Law related to the corporate bond market will generally help the market develop in a more coherent direction.

“The stricter conditions on corporate bonds in the amended Securities Law will help ease the psychology of investors in this market, “pave the way” for investors to return to the market, and stimulate the inherent excitement of this capital mobilization channel,” said Mr. Nguyen Khac Hai, Director of Law and Compliance Control, SSI Securities Company.

However, the expert also agreed that it is necessary to mobilize more foreign investors to diversify the customer base participating in the corporate bond market. “Previously, opening an account to trade corporate bonds for foreign investors in Vietnam had to comply with very strict regulations. We do not need to issue additional regulations related to this issue, instead, we need to review and amend the regulations to create more favorable conditions for foreign investors to participate in this market,” said Mr. Hai.

Regarding tightening the standards for domestic individual investors, according to Mr. Nguyen Thanh Huan, CEO of FIDT, it is necessary. The impact on the market, if any, according to him is not large and only in the short term. Because for individual investors who are not familiar with the corporate bond market but buy or accidentally buy due to incorrect advice from consultants, they basically no longer participate in the market.

As for the medium and long term, it will be very good in this market when it can purify investors.

Along with that, according to him, the development of voluntary pension funds and funds from insurance companies will be the solution to help individual investors benefit. In addition, improved factors in terms of information, transparency, and credit ratings will make the corporate bond market more sustainable.

Nguyen Quang Thuan, Chairman of Fiingroup, said that for institutional investors, currently, institutional investment institutions including investment funds, insurance companies, and voluntary pension funds still own very limited shares (less than 10% of the value of outstanding bonds). Therefore, it is necessary to amend regulations to develop institutional investors: allowing financial institutions to participate more deeply in corporate bonds based on the risk-based investment management framework (Risk-Base Capital).

At the same time, in addition to continuing to standardize information transparency, it is necessary to diversify goods, implement credit rating activities for corporate bonds; form a legal framework for bond underwriting companies and build a soft foundation (yield curve, default history, etc.).

Source: https://www.anninhthudo.vn/neu-khong-cai-cach-manh-me-thi-truong-trai-phieu-se-kho-vuc-day-doanh-nghiep-noi-dia-post597757.antd