Promoting the development of corporate bond and real estate markets

The Prime Minister has just signed an official dispatch on continuing to 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 dispatch stated that in recent times, the Ministry of Finance, the Ministry of Construction, the State Bank of Vietnam (SBV) and other ministries, sectors and localities have proactively and actively implemented the directions and management 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.

corporate bond fb.jpg — Prime Minister requests to promote the development of the corporate bond market (Photo: TD)

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.

Along with that, the Ministry of Finance needs to proactively develop scenarios, assess impacts and have specific and effective plans and measures to handle them according to its authority, contributing to ensuring the safety and security of the financial and monetary markets; not allowing passivity, surprise and negativity to affect the rapid and sustainable development of the economy.

In addition, it is necessary to closely monitor and accurately assess the ability and payment plans of issuing enterprises, especially those that are still facing difficulties and may have risks in their ability to repay debts, in order to proactively take appropriate measures and solutions within their authority to stabilize the market.

The Ministry of Finance needs to require businesses to prioritize resources to fully perform their obligations as prescribed, ensure the legitimate and legal rights and interests of investors and related entities, and ensure the safety and security of the financial and monetary markets in accordance with current laws; have practical and effective solutions to consolidate, enhance and restore investor confidence, and promote the safe, transparent, healthy and sustainable development of the corporate bond market.

In addition, the Ministry of Finance needs to proactively further strengthen state management of corporate bond issuance within its authority, especially in combating 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, promoting economic growth, and ensuring the healthy and sustainable development of the real estate market and corporate bonds.

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

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 development of the public, transparent, safe and healthy real estate market.

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

Corporate bonds increase by hundreds of thousands of billions, Ministry of Finance recommends In the first 10 months of the year, 70 enterprises issued corporate bonds with a volume of 180.4 trillion VND. The volume of early repurchase was 190.7 trillion VND.

Source