On the afternoon of December 4, the Government Electronic Information Portal held a seminar: "Promoting the development of an effective, safe and sustainable corporate bond market" on issues raised so that the corporate bond market continues to develop stably, safely, healthily and transparently, contributing to the process of economic recovery and growth.
The bond market is warming up
Speaking at the seminar, Deputy Director of the Department of Finance of Banks and Financial Institutions, Ministry of Finance Nguyen Hoang Duong shared that since the incident in the financial market in October 2022, along with the negative developments in the domestic and foreign financial markets, the corporate bond market has been severely affected.
As a result, investors lost confidence, businesses were pressured to buy back issued bonds and were unable to issue new bonds to raise capital for production and business.
However, Mr. Duong also frankly admitted that due to violations by bond-issuing enterprises, recently, the authorities have taken strong action - this is an extremely necessary action.
In such a difficult and extremely sensitive context, the Government and the Prime Minister have had many drastic directions in areas related to this capital market, from perfecting the legal framework to maintaining macroeconomic stability, improving the production and business environment as well as markets related to the bond market such as the real estate market, the credit market, and implementing the State's supportive fiscal policies.
Deputy Director of the Department of Finance of Banks and Financial Institutions, Ministry of Finance Nguyen Hoang Duong.
“We have monitored that about 40% of the overdue bond volume of 68 enterprises have now had a negotiation plan, the successful negotiation rate increased from 16% in February 2023 to 63% in October 2023. In addition, enterprises that have arranged financial resources have proactively bought back bonds before maturity,” Mr. Duong said.
Accordingly, to coordinate the implementation of the Government's instructions, the Deputy Director of the Finance Department said that the Ministry of Finance has also actively coordinated with ministries and branches to strengthen inspection and supervision to handle violations in the market to improve market transparency; carry out propaganda work, warn investors, issuers, and financial intermediaries about risks in the market.
Government Resolutions are synchronous and timely.
Assessing the efforts of the Government as well as ministries, departments and branches in "removing obstacles" for the bond channel, Mr. Phan Duc Hieu - National Assembly Delegate, Standing Member of the National Assembly's Economic Committee commented that overall the results achieved show the Government's strong, decisive and decisive management, standing out compared to before.
“Especially with the bond market, determination and drastic action are clearly demonstrated through actions,” Mr. Hieu emphasized.
Accordingly, the expert said that after Decree 65 took effect for about 6 months, recognizing problems in the recent context, the Government promptly, flexibly and decisively issued Decree 08.
When the Decrees were put into effect, many problems arose, so the Prime Minister immediately issued Official Dispatch 1177 to correctly identify the problems and provide clear solutions in both directions: promoting the sustainable development of the corporate bond market and handling the remaining problems of the market.
Mr. Hieu said that this is a comprehensive and synchronous approach, proactive, timely monitoring, detection, notification, improving the effectiveness of State management and enforcement. In addition, the implemented approach demonstrates determination, determination, system, synchronization and comprehensiveness.
Economist Can Van Luc (left) and Mr. Phan Duc Hieu (right) share their opinions at the Seminar.
To promote the corporate bond market to continue to develop stably, safely, healthily and transparently, Mr. Can Van Luc - Economic Expert stated that it is necessary to continue to improve the policy institutions when Decree 08 is about to expire. Continue to diversify products in the corporate bond market, promote new products while also diversifying the investor base, especially institutional investors and professional investors.
Along with that, Mr. Luc said it is necessary to upgrade information technology and data infrastructure and simplify the process and procedures for public issuance.
And finally, although focusing on "stimulating" this market to grow, Economic Expert Can Van Luc did not forget to mention the need to pay attention to strengthening inspection, examination, and supervision, especially the need to improve the capacity and tools for this team.
Corporate bonds have had a "soft landing"
Regarding information about the private bond market after the Centralized Private Corporate Bond Trading System was put into operation on July 19, General Director of the Hanoi Stock Exchange (HNX) Nguyen Anh Phong said that up to now, there have been 760 bonds of more than 200 enterprises registered, with an average trading session of over VND3,000 billion.
Currently, Mr. Phong shares all secondary transactions, transaction information is aggregated on the information page on individual corporate bonds. On this system, there is secondary information and information on the primary market about the offering results as well as transaction activities. Investors as well as management agencies can aggregate this information to make comments, assessments as well as have appropriate policies for the market in each stage.
Ms. Nguyen Ngoc Anh - General Director of SSI Fund Management Company shared at Tao Dam.
Ms. Nguyen Ngoc Anh - General Director of SSI Fund Management Company commented that operating the individual corporate bond market plays a very important role, bringing transparency to the market, especially for individual investors.
After many major cases involving fraudulent acts in the issuance and trading of bonds to defraud and appropriate people's assets were exposed, it is necessary to analyze the risks of businesses from the investor's side.
“Up to this point, we can all say that there has been a “soft landing” for this incident. The Ministry of Finance has resolutely issued Decree 08 to have a legal basis to help the parties negotiate and extend, putting into operation the secondary private bond market in a truly unprecedented time, which also greatly supports the rebuilding of investor and market confidence,” Ms. Ngoc Anh assessed .
Source
Comment (0)