Ministry of Finance: Corporate bond market is recovering positively

ANTD.VN - The Ministry of Finance will continue to organize focused inspections and examinations to improve the quality of issuance and service provision in the corporate bond market, strengthening investor confidence.

Informing the press about the corporate bond market, Mr. Nguyen Hoang Duong - Deputy Director of the Department of Banking and Finance (Ministry of Finance) said that with the synchronous implementation of solutions to stabilize the market under the direction of the Government , since the second quarter of 2023, the corporate bond market situation has shown signs of improvement, with issuance volume increasing.

Mr. Nguyen Hoang Duong

In the first 10 months of the year, 70 enterprises issued bonds worth VND180.4 trillion. Of which, since Decree 08/2023/ND-CP took effect, the issuance volume was VND179.5 trillion. In October 2023, the issuance volume was VND41 trillion, an increase of VND17 trillion compared to September.

Since the beginning of the year, businesses have bought back 190.7 trillion VND worth of bonds before maturity (higher than the total issued amount), with about 14.2 trillion VND in October 2023 alone.

According to a representative of the Ministry of Finance, the positive recovery of the corporate bond market is a combination of both the Government's drastic policies and the changes of market participants.

In particular, the Ministry of Finance has submitted to the Government Decree No. 08/2023/ND-CP to temporarily postpone the implementation of some provisions of Decree No. 65/2022/ND-CP so that businesses have more time to deal with immediate difficulties regarding bonds, contributing to reducing liquidity pressure and gradually restoring confidence in the market.

From July 19, 2023, the individual corporate bond trading system at the Hanoi Stock Exchange will officially operate, contributing to promoting liquidity for the corporate bond market and creating conditions for the individual corporate bond primary market to develop more sustainably...

However, Mr. Nguyen Hoang Duong also noted that only professional securities investors are allowed to trade on the individual TPDN trading system. Before buying bonds, investors must sign a commitment to have full access to information about the bonds, and service providers or bond sellers must also confirm that they have provided all necessary documents to investors.

Regarding the purchase of individual corporate bonds in general, the representative of the Ministry of Finance recommends that investors need to pay attention to having a full understanding of legal regulations, have full access to information about the issuing enterprise and the bond, carefully evaluate the financial situation of the issuing enterprise, and be cautious with consulting services.

Investors must clearly distinguish corporate bond products from bank deposits, assess the level of risk commensurate with the profit when investing in bonds and take responsibility for their investment decisions.

“Investors also need to note that the risks of bonds are risks associated with the bond-issuing enterprise, not risks related to the bond distribution organization, including commercial banks distributing bonds,” Mr. Duong emphasized.

In the coming time, the Ministry of Finance said it will coordinate with relevant ministries and branches to continue implementing solutions to stabilize and develop the corporate bond market in a public, transparent, safe and sustainable manner to unlock medium and long-term capital sources for investment and development.

In particular, the Ministry will continue to monitor and require businesses to arrange all resources to pay principal and interest on bonds due in accordance with the law, protecting the interests of investors. Businesses that have difficulty in payment must work and negotiate with investors to agree on a bond restructuring plan...

Regarding inspection and supervision activities, the Ministry of Finance will continue to direct the State Securities Commission and functional units to organize focused and key inspections at issuing enterprises and service providers to improve the issuance quality of issuing enterprises, the quality of service provision in the corporate bond market, and strengthen investor confidence.

After the inspection, there will be a wide public announcement to the market about any violations, if any.

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