Measures suggested to guarantee corporate bond market’s stability

Several measures have been suggested at an online seminar held by the Government Portal on May 28 to help the corporate bond market maintain its stability and operate in line with law to aid economic growth.

Measures suggested to guarantee corporate bond market’s stability hinh anh 1

Illustrative image (Photo: vneconomy.vn)

Several measures have been suggested at an online seminar held by the Government Portal on May 28 to help the corporate bond market maintain its stability and operate in line with law to aid economic growth.

The corporate bond market is a big source of capital for the economy. In the latter half of 2022, a “psychological” shock was recorded in the private placement segment following many violations uncovered by authorities.

The Government, the Prime Minister and management agencies have made many important decisions to stabilise the market, ensure its compliance with law, and enhance people’s trust to support the economy.

Speaking via videoconference, Assoc. Prof. Dr Vu Minh Khuong, a lecturer at the Singapore-based Lee Kuan Yew School of Public Policy, said to help enterprises avoid committing violations, their leaders should gain a thorough understanding of corporate governance, ensure legal issues and rescue response, and conduct annual audits.

It is a highly urgent need to build a foundation for a healthy financial system, he said, expressing his belief that the Government of the current tenure can manage to do that and view current challenges as a chance to make strategic determination to create a good foundation for the time ahead.

Prof. Dr Hoang Van Cuong, Vice Rector of the Hanoi-based National Economics University, held that it’s now the time for increasing resources for businesses, noting companies are sourcing capital mainly from the corporate bond market and bank loans, and enterprises’ stable operations will help maintain macro-economic balance.

He added the bond market requires both capable stakeholders and a legal environment for an ecosystem. Facing the recent “bond crisis”, the Government has taken relatively timely and methodological moves to early prevent the situation from getting worse.

Measures suggested to guarantee corporate bond market’s stability hinh anh 2

Some participants in the online seminar (Photo: VNA)

Suggesting ways for shoring up the market, Deputy Minister of Finance Nguyen Duc Chi said it is necessary to issue legal regulations on the bond market and make flexible and effective response to changes in reality.

Recently, the Government issued Decree 65/2022/ND-CP and Decree 08/2023/ND-CP, helping bond issuers and investors to have legal tools and time to settle immediate difficulties in terms of money, liquidity, and collateral, among others basing on the consistent principle of harmonising interests and sharing risks.

Chi said bond issuers must be responsible for their obligations and commitments towards investors. State agencies need to monitor enterprises and the market to ensure that obligations are fulfilled in accordance with law. Meanwhile, investors themselves should also adhere to legal rules so that the State can guarantee the market’s transparency as well as the rights and interests of all stakeholders.

Facing difficulties in the real estate market, the Government has taken many measures to assist bond issuers such as extending debt and tax payment deadlines and reducing lending interest rates. The moves have helped the corporate bond market regain stability, the official went on.

At the seminar, participants also shared views on the stabilisation of macro-balances and the results obtained so far. They perceived that the combination of policies on macro-economic governance, especially the harmonious use of fiscal and monetary policies and an expanded fiscal policy like extending tax payment deadlines, cutting down taxes, and reducing land rents, is critical to macro-economic stability./.

en.vietnamplus.vn

Related News

Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electronic invoices as well as pay taxes in gold investment activities.
Issuance of corporate bonds shows signs of recovery

Issuance of corporate bonds shows signs of recovery

VCN - In the first half of the year, the volume of newly issued bonds showed signs of recovery from the second quarter after Decree 08 took effect. After the moves to purify the corporate bond market in 2022, the restructuring and making the market transparent, and regaining investors' trust will still be a priority in the long-term policy. And this started with the launch of a private corporate bond trading system on the HNX.
Corporate bond market hoped to develop sustainably

Corporate bond market hoped to develop sustainably

Following the recent launch of the privately-placed corporate bond trading system, Minister of Finance Ho Duc Phoc has said if transparency and safety are ensured, privately-placed corporate bonds will effectively prove their role in mobilising capital for businesses.
Corporate bond market to continue to face headwinds in H2

Corporate bond market to continue to face headwinds in H2

The corporate bond market will continue to face headwinds in the second half of the year, experts said.

Latest News

Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units with large asset scale and large number of inventory items, complex assets, and slow implementation progress.

More News

The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

VCN - The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more; the average growth rate of the consumer price index (CPI) to about 4.5-5%.
Fiscal, monetary policies support demand stimulation, price stabilisation

Fiscal, monetary policies support demand stimulation, price stabilisation

These efforts, in conjunction with the implementation of monetary policies and other macroeconomic policies, aim to solve difficulties for businesses and the public, stabilise the macroeconomy, control inflation, ensure the balance of the economy, promote economic growth, and secure social welfare and people’s livelihoods.
Vietnam secures VND 157 billion from state enterprise divestment in 2024

Vietnam secures VND 157 billion from state enterprise divestment in 2024

VCN - The Ministry of Finance reported that in 2024, the divestment of state capital in 5 enterprises (F1) generated VND 157 billion from an initial value of VND 145 billion
Vietnam gears up for potential inflation impact in 2025

Vietnam gears up for potential inflation impact in 2025

VCN - For sound price management and inflation control, Deputy Prime Minister Ho Duc Phoc directed officials to vigilantly track both domestic and international market dynamics. The goal is to proactively develop flexible strategies and solutions, enabling a swift response to any emerging challenges.
VN’s credit conditions in 2025 expected to be stable

VN’s credit conditions in 2025 expected to be stable

The credit conditions for Việt Nam will stabilise in 2025, after improving substantially over the past year, the rating agency VIS is forcasts.
State revenue in first month of the year equal to 14% of the estimate

State revenue in first month of the year equal to 14% of the estimate

VCN - According to the Ministry of Finance, in January - the first month of 2025, the total state budget revenue is estimated at VND275.9 trillion, equal to 14% of the estimate; meanwhile, the total state budget expenditure is estimated at VND134.4 trillion.
Securities 2025 expects a breakthrough in scale and quality

Securities 2025 expects a breakthrough in scale and quality

VCN – The positive factors inherent in the macro economy and the Vietnamese stock market will continue to create the foundation for the market to maintain stability, good liquidity, and growth in both scale and quality in the new year of At Ty 2025, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said.
Cash reserves in stock accounts at six-quarter low amid margin rise

Cash reserves in stock accounts at six-quarter low amid margin rise

These funds are readily available in investor accounts, but remained undeployed as of the year-end.
Five solutions for developing stock market in 2025

Five solutions for developing stock market in 2025

VCN - On February 5, 2025, at the Gong-beating ceremony to open the stock trading at the Ho Chi Minh City Stock Exchange (HOSE), Deputy Minister of Finance Nguyen Duc Chi introduced five solutions for comprehensive development of the stock market.
Read More

Your care

Latest Most read
Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units
The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more
Mobile Version