The launch of the separate corporate bond trading market opens up an opportunity to help this market operate more transparently as issuer information becomes more periodic. This will give investors better access to information about businesses and bond products, make investors feel secure for long-term holding, and reduce the pressure of early repayment for issuers.
As many banks have been stepping up bond redemption before maturity, experts warned that the activity can affect the banks’ ability to supply capital for the economy and boost credit growth in the remaining months of this year.
Due to the stagnant bond market, the Ministry of Finance (MoF) has proposed a decree amendment to allow enterprises to convert bond payments into assets, including real estate.
The Ministry of Finance (MoF) has just submitted to the Government a draft decree on trading private placement of corporate bonds in the domestic market and offering bonds to international markets.
While it is urgent to tackle the liquidity problem, a fundamental solution is regaining investors’ confidence and stabilising the corporate bond market, experts said.
The Ministry of Finance has sent documents to bond issuers, asking them to utilise resources to fulfill their commitments to investors, said Deputy Minister Nguyen Duc Chi on solutions to difficulties in the corporate bond market at the Government's regular press conference in Hanoi on December 1.
After strong growth in the previous quarter, Vietnam’s currency bond market contracted 0.2% due to a decline in the Government bond market and slower growth in corporate bonds.
Viet Nam’s currency bond market is forecast to reach US$100 billion, expanding 31.6 percent against the previous year, according to the Asian Development Bank’s (ADB) Asian Bond Monitor report.