Corporate bond and real estate markets have not met expectations, Prime Minister gives urgent instructions

Telegram 1177/CD-TTg dated November 23, 2023 stated that in recent times, the Ministry of Finance, the Ministry of Construction, the State Bank and other ministries, branches and localities have proactively and actively implemented the directions and administrations of the Government and the Prime Minister on enhancing access to credit capital, promoting the development of the corporate bond market and real estate effectively, safely, healthily and sustainably.

Thereby, the corporate bond market has gradually stabilized, and the real estate market has changed in a positive direction.

However, although the corporate bond and real estate markets have improved, they have not met expectations; credit growth is low, the economy's ability to absorb capital continues to be difficult, and bad debt tends to increase.

The corporate bond and real estate markets have not met expectations. (Illustration photo: Government Newspaper)

To continue to effectively, promptly and drastically implement solutions to increase access to credit capital, promote the development of the corporate bond and real estate markets effectively, safely, healthily and sustainably, the Prime Minister requested the Ministry of Finance to urgently review and carefully assess the payment capacity of organizations issuing corporate bonds, especially bonds due for payment in late 2023 and 2024.

Thereby, proactively building scenarios, assessing impacts and having specific and effective plans and measures to handle according to authority, contributing to ensuring safety and security of the financial and monetary markets; avoiding passivity, surprise and negativity to the rapid and sustainable development of the economy.

Closely monitor and accurately assess the ability and payment plans of issuing enterprises, especially those facing difficulties and possible risks in debt repayment capacity, to proactively take appropriate measures and solutions within authority to stabilize the market.

Proactively further promote state management of corporate bond issuance within its authority, especially against negativity, taking advantage of policies and other unhealthy activities.

The Prime Minister also requested the State Bank to preside over and coordinate with relevant agencies to manage credit growth reasonably and effectively, strive to achieve the highest possible set target, improve credit quality, direct credit to production and business sectors, priority sectors, and growth drivers of the economy (especially investment, consumption, export, digital transformation, green transformation, etc.).

Closely monitor developments in the real estate market, corporate bonds, and real estate credit to find solutions that both ensure the safety of the banking system and contribute to solving difficulties, removing bottlenecks, and promoting economic growth.

The State Bank needs to continue to carefully study and find feasible solutions to drastically and effectively implement the VND120,000 billion credit program for lending to investors and home buyers of social housing projects, worker housing projects, and projects to renovate and rebuild old apartments; continue to promote the implementation of the VND15,000 billion preferential credit package for the forestry and fishery sectors.

In addition, resolutely, strongly and effectively implement solutions to facilitate businesses and people to access credit capital. Further promote administrative procedure reform, review and resolutely cut down on inappropriate administrative procedures that are costly, troublesome and increase costs for people and businesses.

The State Bank of Vietnam continues to review and find solutions to strengthen direction, inspection, supervision and guidance for commercial banks so that businesses, real estate projects and home buyers can access credit sources more conveniently, promptly resolving difficulties in capital and cash flow.

The Prime Minister also directed the Ministry of Construction to continue to closely and effectively coordinate with the National Assembly agencies and relevant agencies to review, revise and complete the draft Law on Housing (amended) and the draft Law on Real Estate Business (amended) for the 15th National Assembly to consider and approve at the 6th Session to ensure feasibility, practicality, maximum removal of difficulties and obstacles, and strong promotion of the development of a public, transparent, safe and healthy real estate market.

The Ministry of Natural Resources and Environment must promptly guide localities to resolve problems related to land allocation and leasing, especially land price determination, land management and use. Strengthen inspection and examination of the settlement of land price determination procedures for real estate projects, promptly detect and resolutely handle cases that cause difficulties, inconvenience, roundabout handling, delay and signs of law violations.

Thanh Lam

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