SGGPO
On the morning of July 19, in Hanoi, the Ministry of Finance held the opening ceremony of the private corporate bond trading system (TPDNRL) at the Hanoi Stock Exchange (HNX).
Speaking at the event, Minister of Finance Ho Duc Phoc commented that although Vietnam's corporate bond market has been established for a long time, it has only really received attention and development in the past 5 years. However, compared to its potential and correlation with the regional market, the scale of Vietnam's corporate bond market is still quite modest, not reaching the set target.
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Deputy Prime Minister Le Minh Khai and delegates at the opening ceremony |
Currently, the outstanding balance of the entire corporate bond market, including individual corporate bonds, is only about 13% of GDP. Meanwhile, the Government has set a target that by 2025, the outstanding balance of the corporate bond market will reach at least 20% of GDP and by 2030, at least 25% of GDP, thus requiring the quality of the market to be improved. Current reality shows that the market structure is not sustainable, the majority of enterprises issuing bonds to raise capital belong to high-risk industries.
Therefore, when the individual corporate bond system is put into operation, it will contribute to promoting market liquidity, increasing transparency, and limiting risks for investors.
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Minister of Finance Ho Duc Phoc speaks at the opening ceremony. |
However, according to the representative of the Ministry of Finance, the launch of the private corporate bond trading system is only the first step. In the coming time, it is necessary to further improve the market development in accordance with the level of the economy, expand international access, improve transparency, publicize corporate information and ensure the rights of the subjects.
According to Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, the establishment of the private corporate bond trading system is expected to help increase transparency and liquidity for the market, helping management agencies, market members, and the investing public have more information about the private corporate bond market from primary to secondary; enhance investors' self-responsibility in bond trading activities; and enhance the effectiveness of management and supervision by state agencies regarding compliance with legal regulations on private corporate bond trading.
Also related to the opening event of the individual corporate bond trading system, on July 18, Saigon - Hanoi Securities Joint Stock Company (SHS) was approved by HNX and Vietnam Securities Depository to become a member of individual corporate bond trading.
Accordingly, starting from July 18, SHS can participate in the individual bond payment system to process related transactions to serve investors' transaction needs.
The centralized individual corporate bond trading system allows professional securities investors to fully understand buying and selling information before trading with the support of trading members. To conduct individual corporate bond trading, investors must open a trading account at a trading member.
The system currently supports two types of orders: electronic agreements and regular agreements (transaction reports). Payments for individual corporate bond transactions are made by the instant payment method for each transaction, similar to the payment method currently applied in the derivatives market, or the order will be paid at the end of the trading day according to the investor's choice. It is expected that on the opening day, the system will have at least 20 corporate bonds traded and within the next 3 months, the number will be 1,300 bonds through the system.
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