Enterprises need to proactively give credit ratings, conduct audits, and increase transparency to rebuild trust

By Hoai Anh/ Huyen Trang

09:48 | 03/05/2023 Finance Follow english.haiquanonline.com.vn on

VCN - According to the Ministry of Finance, bond issuers must actively use credit rating services and audit activities to enhance publicity and transparency to help investors clearly understand the financial capacity, debt solvency of the issuers, and risks related to bond investment.

	The strength of the economy and fiscal policy help Vietnam to rise in credit rating
	Lang Son Customs Department builds trust in the business community
	Worries about credit standards with increase of bad debts

The corporate bond market has been in trouble since the violations of Tan Hoang Minh and Van Thinh Phat. Photo: Internet

Since the violations of Tan Hoang Minh and Van Thinh Phat were discovered and handled in 2022, the corporate bond market has faced difficulties; investors have lost trust in the market and issuers, the volume of new issues decreased, investors resold bonds before their maturity, and the volume of purchasing bonds before maturity increased.

To remove difficulties, the Ministry of Finance has coordinated with related ministries and agencies to research and offer solutions to develop a transparent and sustainable market, and strengthen audits related to corporate bonds at issuers and service providers; issued documents to request enterprises to make payment of principal and interest of maturity bonds to investors. In addition, the Ministry of Finance has worked with nearly 40 bond issuers to find solutions to strengthen investors' confidence, increase liquidity and remove difficulties for the market. Furthermore, regarding the completion of the legal framework, the Ministry of Finance has submitted to the Government for promulgation Decree 08/2023/ND-CP to remove current difficulties and create conditions for businesses to have more time to negotiate with investors about plans for debt restructuring.

On the enterprise side, to rebuild investors' trust, enterprises need to actively improve their financial capacity, restructure capital sources in line with their investment, production and business activities, and ensure resources to maintain stable production and business activities, thereby ensuring the source of repayment of bond principal and interest.

Moreover, the enterprises must fully comply with regulations disclosure; fulfil their responsibilities to investors according to the announced issuance plan, strengthening investors' confidence in enterprises.

More national-branded firms join top 50 Vietnamese brands

Further, the enterprises must actively use credit rating services and audit activities to enhance publicity and transparency to help investors understand the financial capacity and debt solvency of enterprises as well as the risks involved in bond investment.

By Hoai Anh/ Huyen Trang

Tags:

Related News

Continue to handle cross-ownership in banks

10:35 | 02/11/2024 Finance

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.

"One law amending four laws" on investment to decentralize and ease business challenges

16:44 | 01/11/2024 Regulations

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") focuses on amending conflicting regulations that are causing obstacles, to facilitate investment, production, and business activities.

Removing difficulties in public investment disbursement

09:30 | 31/10/2024 Finance

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

00:00 | 19/10/2024 Regulations

VCN - According to the representative of the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Finance and the National Assembly Committees are urgently collecting opinions to complete the draft Law amending seven Laws, to ensure that the issued regulations are reasonable and remove difficulties for businesses.

Latest News

M&A activities show signs of recovery

13:28 | 04/11/2024 Finance

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.

Fiscal policy needs to return to normal state in new period

09:54 | 04/11/2024 Finance

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.

Ensuring national public debt safety in 2024

17:33 | 03/11/2024 Finance

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.

Removing many bottlenecks in regular spending to purchase assets and equipment

07:14 | 03/11/2024 Finance

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

More News

Striving for average CPI not to exceed 4%

16:41 | 01/11/2024 Finance

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

16:39 | 01/11/2024 Finance

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...

State-owned commercial banking sector performs optimistic growth, but more capital in need

09:28 | 31/10/2024 Finance

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

09:29 | 29/10/2024 Finance

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.

Rush to finalize draft decree on public asset restructuring

09:28 | 29/10/2024 Finance

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.

Inspection report on gold trading activities being complied: SBV

14:37 | 28/10/2024 Finance

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

10:45 | 28/10/2024 Finance

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.

Ensure timely and effective management and use of public asset

11:31 | 27/10/2024 Finance

VCN – In order to promptly and effectively implement public asset management and use, ensuring compliance with legal regulations, the Ministry of Finance has just issued an official dispatch requesting ministries, branches and localities to comply with regulations in the Government’s Decree No. 114/2024/ND-CP dated September 15, 2024.

Accelerating decentralization in public asset management

11:26 | 26/10/2024 Finance

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.

Your care

Latest Most read