In the latter half of the year, bond issuance is expected to rise with economic momentum, real estate recovery, and easing constraints in the corporate bond market.
The corporate bond market has remained stagnant in the first few months of 2024 due to a series of scandals and legal issues, particularly the arrest of the chairwoman of Vạn Thịnh Phát at the end of 2022.
In addition to simplifying issuance regulations, experts also said that a comprehensive solution is needed to remove legal barriers and develop investor bases.
Significant efforts have been made to enhance the safety, health, and transparency of the corporate bond market, said Nguyễn Hoàng Dương from the Ministry of Finance.
According to assessments from regulatory authorities, firms have recently suffered liquidity issues, potentially resulting in delays in principle and interest payments for corporate bonds.
The market may enter a new cycle. However, the quality of newly issued bonds needs to be carefully observed, especially companies established solely for the purpose of raising capital.
Statistics showed that about 70 enterprises issued bonds worth VNĐ180.4 trillion in the first 10 months of this year and bought VNĐ190.7 trillion of bonds before maturity, an increase of 30.3 per cent over the same period last year.
Article 3 of Decree No.08 stipulates that three specific articles in Decree No.65, one regulating professional securities investors, one regulating time intervals between bond issues, and one regulating bond issuers credit ratings, will no longer be in effect as of December 31, 2023.
Following the recent launch of the privately-placed corporate bond trading system, Minister of Finance Hồ Đức Phớc 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.
More than VND600 billion worth of bonds were issued in the first two months of the year, while the value soared to nearly VND25 trillion just in March after Decree No. 8 came into effect.