To make the bond issuance channel more attractive to the public, shortening the issuance and listing time is a “key”. That is the view of Mr. Nghiem Xuan Huy - Chairman of the Board of Directors and General Director of VNSC in a recent exchange with Dau Tu Newspaper.
Chairman and General Director of VNSC: Shortening the listing time, public bonds will be more attractive
To make the bond issuance channel more attractive to the public, shortening the issuance and listing time is a “key”. That is the view of Mr. Nghiem Xuan Huy - Chairman of the Board of Directors and General Director of VNSC in a recent exchange with Dau Tu Newspaper.
DNSE's public bond issuance recorded positive results with 100% of the issued bonds successfully distributed to nearly 300 individual and institutional investors. In your opinion, what factors helped DNSE's issuance attract attention?
The public bond issuance of DNSE Securities Joint Stock Company (DNSE) with a total value of VND 300 billion is one of the first issuances of 2025 and is also the first time DNSE has issued bonds to the public, after many previous private bond issuances.
VNSC is the distributor in this issuance. In my opinion, the success of this bond issuance comes from many important factors. Among them, the supply of bonds to the public is not much, even in the financial sector, financial business is also lacking in the market.
Therefore, the issuance of bonds from DNSE creates a new wind, creating opportunities for investors. DNSE's business results have had positive growth over the past 2 years. At the same time, the coupon interest rate of this bond lot is also competitive in the market during this time. In addition, the company's existing distribution channel is the VNSC by Finhay platform, including individuals and organizations, which are suitable customers for bond products issued to the public.
From the perspective of the unit distributing the above bonds, what has VNSC done to attract investors and ensure transparency in transactions?
One of the company's current advantages that helps attract investors' attention is its young customer base, mainly between the ages of 22-35, who are in the process of accumulating finances for the future. The company focuses on providing digital investment services, services and platforms that are all digitally interactive, suitable for young, dynamic customers who quickly adapt to technology, making it easy for investors to access.
At the same time, information about the opening sale is provided specifically and quickly, investors can access directly through the company's digital communication channels, suitable for the experience of young customers who tend to interact more online. Customers can deposit money to buy bonds 24/7 and receive instant confirmation notifications, creating peace of mind for customers when registering to buy bonds from the public offering.
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| Mr. Nghiem Xuan Huy - Chairman of the Board of Directors and General Director of VNSC |
Law No. 56/2024/QH15 of 2024 amending 9 laws, including the Securities Law, has just come into effect on January 1, 2025 with many new regulations. How will the new changes affect the bond market?
Recent legal adjustments are positive changes that help the bond market become more efficient and transparent. I believe that despite certain short-term difficulties and shortcomings in the transition period, the capital market through the bond channel will become more efficient and stable in the medium and long term. The addition of regulations on the credit rating system will help investors have more tools to assess risks before deciding to invest. An efficient market needs this entity to create more value for investors.
For the private bond market, the legal framework also encourages non-professional investors to invest indirectly through bond funds operated by fund management companies. This is where there will be professional management experts. Meanwhile, the public bond market will become a new option for qualified issuers to increase their mobilization channels through bond instruments.
According to VIS Rating, in 2024, the number of bonds issued to the public will increase by 30% compared to 2023, reaching 46 trillion VND. However, the proportion of bonds issued to the public is still low compared to the total issuance value. Why has this mobilization channel not attracted many businesses and what are the factors that help the bond market attract more investors?
Regarding this issue, in my opinion, the conditions for issuing bonds to the public require businesses to meet more stringent standards than private issuance, making many businesses hesitant about this capital mobilization channel.
In order for the bond market to attract more investors, we believe that there are keys to unlocking the issue. First, the quality of the issuer plays an important role. The size of investment funds in the market also needs to be expanded to make it easier for individual investors to access. In addition, shortening the time for issuing and listing bonds will help the market become more flexible.
In the Draft Decree amending and supplementing a number of articles of Decree No. 155/2020/ND-CP detailing the implementation of a number of articles of the Securities Law, which is soliciting comments, the time limit from the date of approval for listing, for organizations registering for listing to put bonds into trading has been reduced from 90 days to 30 days.
The above changes will provide more support to bondholders who have issued bonds to the public. In addition, the coupon interest rate is more attractive than bank deposits and the bond holding period is also an important factor. Improving the above “key” factors will help attract more capital from investors through this capital mobilization channel.
Not only bonds, VNSC has also distributed fund certificate products. Is distributing financial products to end customers a strategic priority of VNSC in the coming time?
In the past, VNSC has distributed fund certificates and bonds to investors. For both of these products, we need to provide full information and detailed instructions to end customers. Customers can also buy both of these products on VNSC's platform. These are also securities, bringing returns to investors.
However, with funds, experts are the managers, and customers own the fund certificates. In the case of open-end funds, the buying/selling time varies depending on the type of fund and the fund's trading conditions. Meanwhile, bonds issued to the public can be bought/sold directly on the HNX with a trading time of T+1, quite similar to stocks.
In addition, fund certificates require a separate custody account, while public bonds can be deposited with a securities account. VNSC's goal is to provide a variety of financial products on a single platform, making it easy for customers to access, trade and monitor their investment portfolio. VNSC by Finhay's orientation is to become the leading platform for online accumulation and investment.
In general, product features have similarities and differences. For us, the goal is for customers to use and experience many financial products concentrated in one place, easily interact with deposits/withdrawals, transactions, and tracking right on one platform. This is also the company's orientation, making VNSC by Finhay a place that appears at the top of users' minds when it comes to saving and investing online.
Source: https://baodautu.vn/chu-tich-tong-giam-doc-vnsc-rut-ngan-thoi-gian-niem-yet-trai-phieu-ra-cong-chung-se-hap-dan-hon-d242297.html
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