On the afternoon of December 4, the Government Electronic Information Portal held a seminar to promote the development of the corporate bond market effectively, safely and sustainably.
Information here, Mr. Nguyen Hoang Duong, Deputy Director of the Department of Finance of Banks and Financial Institutions (Ministry of Finance) said that since the incidents 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, investors have lost confidence, businesses are under pressure to buy back issued bonds as well as not being able to issue new bonds to mobilize capital for production and business.
In that context, the Government and the Prime Minister have given many strong directions in areas related to this 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.
The Government has issued Decree No. 08/2023/ND-CP amending, supplementing and suspending the implementation of a number of articles in the decrees regulating the offering and trading of individual corporate bonds in the domestic market and the offering of corporate bonds to the international market, including a policy allowing businesses and investors to have mechanisms to negotiate, extend, postpone and exchange issued bonds in the spirit of shared risks and harmonious benefits between the parties.
After the Government issued Decree 08, the market has shown more positive signs, and businesses have returned to issuing bonds. If there were almost no issuances in the first quarter, from the second quarter onwards, the issuance volume each month was higher than the previous month. By the end of November, 77 businesses had issued a volume of about VND 220,000 billion. Based on the provisions of Decree 08, businesses and bondholder investors have made great efforts to negotiate the payment of maturing bonds. About 40% of the overdue bond volume of 68 businesses have so far had a negotiation plan, the successful negotiation rate increased from 16% in February 2023 to 63% in October 2023. Businesses that have arranged financial resources have proactively bought back bonds before maturity.
Along with that, implementing the directions of the Government and the Prime Minister, the Ministry of Finance has 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.
Mr. Nguyen Hoang Duong emphasized that corporate bonds are a very important medium and long-term capital mobilization channel for enterprises. Developing the corporate bond market is also to implement the Party and State's policy to gradually develop a balance between the capital market and the bank credit market. In the coming time, when enterprises need a large amount of capital to expand production and business activities after the economy recovers, the corporate bond channel will become even more important. The Ministry of Finance will assess the situation to have appropriate solutions in the coming time to develop a sustainable, transparent and effective corporate bond market.
Sharing at the seminar, economic expert Can Van Luc also commented that recent policies have led to the corporate bond market recovering, with businesses issuing about VND240,000 billion, of which VND220,000 billion was issued through private corporate bonds and VND20,000 billion through public bond issuance, down only 10% over the same period last year. In October, businesses issued VND41,000 billion, while in September they issued VND29,500 billion and in August they issued VND25,000 billion. In November, it was about VND30,000 billion, 15 times higher than in November of the same period last year. “Obviously, although there are still barriers, the market is recovering positively, confidence is recovering... These are signs that help the market develop better. Decree 08 is an unprecedented policy decision, allowing the extension and postponement of bond debt and the exchange of goods, that is, allowing the exchange of bonds for real estate products or other products. This is unprecedented, helping to solve a very important problem for the real estate market," said economic expert Can Van Luc.
Mr. Nguyen Anh Phong, General Director of Hanoi Stock Exchange (HNX) commented that on July 19, the first centralized private corporate bond trading system in Vietnam came into operation. The system has been running smoothly since its inception, thereby creating confidence for investors. Along with the impact of Decree No. 08, the launch of this private lookup system has helped issuance activities in the primary market return to being more active. In the 5 months from July to now, the issuance volume is about 180,000 billion VND, 5 times higher than the first 6 months of the year. This also shows that the policy has come into life and the market has regained confidence.
Ms. Nguyen Ngoc Anh, General Director of SSI Fund Management Company, also commented that at the end of 2022, all market members have a common concern about what will happen next in 2023. “At this point, I, like all of you here, can say that there has been a "soft landing" for this incident. If before, investors did not have a market to trade, buy and sell, now they have an electronic trading market to buy and sell with very clear terms, conditions and commitments. A very difficult year has passed and this is truly an opportunity, a premise for 2024 to have remarkable growth in this market,” Ms. Nguyen Ngoc Anh shared.
PHAN THAO
Source
![[Photo] Prime Minister Pham Minh Chinh chairs Government Conference with localities on economic growth](https://vstatic.vietnam.vn/vietnam/resource/IMAGE/2025/2/21/f34583484f2643a2a2b72168a0d64baa)
Comment (0)