According to a report released by the Ministry of Construction, Vietnam’s corporate bond market, particularly in the real estate sector, experienced notable fluctuations in Q1.
The corporate bond market continued its robust recovery with an average transaction value of 11.54 trillion VND (453.5 million USD) per session, up 77% compared to the previous year.
To promote the professional corporate bond market, one solution is to focus on widespread public offerings of corporate bonds rather than private placements, said experts.
The corporate bond market has recovered significantly in recent months after the shocks caused by violations in issuance of several real estate developers.
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.
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 Government convened the regular April meeting under the chair of Prime Minister Pham Minh Chinh on May 5 to look into the socio-economic situation in April and the first four months of 2023, along with some other important issues.
The State Bank of Vietnam (SBV) has unveiled a preliminary revision to Circular 16, requesting public input on proposed modifications that would permit credit institutions to procure corporate bonds as a means of boosting liquidity in the corporate bond market.
The corporate bond market is showing signs of recovery after a prolonged period of inactivity with a notable increase in both the number of issuers and value of issuance.
Many banks reported negative results in securities trading and investment in 2022 due to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market, cafef.vn reported.
The Ministry of Finance has conducted procedures to adjust and supplement the Government’s Decree 65 regarding the private issuance of corporate bonds, Deputy Minister Nguyen Duc Chi said at a government regular press conference in Hanoi on February 2.
Faster-than-expected GDP growth, the upgrade of Vietnam’s credit ratings, and big fluctuations in the corporate bond market are among notable events of the Vietnamese economy in 2022.
Country Director of the Asian Development Bank (ADB) in Vietnam Andrew Jeffries has attributed Vietnam’s economic growth in 2022 to a strong performance across sectors.
Prime Minister Pham Minh Chinh has requested the Minister of Finance to submit measures ensuring the healthy, transparent, safe and effective operations of corporate bond market to him before December 20.
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.
Although the 2020-2022 period was a tough time for both State-owned and private enterprises due to macro-economic fluctuations after the COVID-19 pandemic, it provided a good chance for businesses that managed to exist and make breakthrough growth, according to a report by Vietnam Report JSC.
Cases related to legal violations involving corporate bond mobilization are causing 'bottlenecks’, making it necessary to seek solutions to help the market develop effectively.
The scale of capital mobilisation through corporate bonds is forecast to decrease sharply, but there will be a drastic change in quality, according to a study on the corporate bond market by FiinRatings.