Corporate bonds increase by hundreds of thousands of billions, Ministry of Finance recommends

According to the Ministry of Finance , in the first 10 months of the year, 70 enterprises issued corporate bonds with a volume of VND 180.4 trillion; the volume of early repurchase was VND 190.7 trillion (up 30.2% over the same period in 2022). Since Decree 08/2023/ND-CP took effect, the issuance volume was VND 179.5 trillion.

Thus, the total volume of corporate bonds bought back before maturity is higher than the total issued.

In October 2023 alone, the issuance volume was 41 trillion VND, an increase of 17 trillion VND compared to September. Enterprises bought back about 14.2 trillion VND.

dsc 6014.jpg — The corporate bond market is gradually regaining confidence.

In recent times, the Ministry of Finance has regularly disseminated information about corporate bonds, warned about market risks, and advised investors to assess risks when making investment decisions. The Ministry of Finance will strengthen its communication, training, and dissemination of laws in the coming time.

Mr. Nguyen Hoang Duong, Deputy Director of the Banking and Finance Department (Ministry of Finance), said: "We recommend that only professional securities investors can buy individual corporate bonds."

More importantly, Mr. Duong noted, investors need to fully understand the provisions of the law, have full access to information about the issuing enterprise and the bond, carefully evaluate the financial situation of the issuing enterprise, be cautious with consulting services, clearly distinguish corporate bond products from bank deposits, assess the level of risk commensurate with the profit when investing in bonds and be responsible for their decisions.

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

The Ministry of Finance said it will continue to monitor and require businesses to arrange all resources to pay principal and interest on maturing bonds in accordance with the law, protecting investors' rights.

"In case of payment difficulties, businesses are required to work and negotiate with investors to agree on a bond restructuring plan," the representative of the Ministry of Finance emphasized.

Corporate bond market: After the shock, is it time to rise? The bond market is less tense, although still gloomy, the confidence of individual investors has decreased a lot after the shocks. However, the potential of this market is very large, even larger than the stock market.

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