Hanoi (VNS / VNA) – The Ministry of Finance takes measures to better develop the corporate bond market safely and efficiently.
As a result, the ministry is drafting a circular aimed at establishing a private market in corporate bonds for professional investors in securities.
It also improves a corporate bond information page and a corporate bond listing and trading system.
In order to strengthen the inspection and surveillance of the corporate bond market, the ministry has instructed the State Securities Commission to inspect the supply and demand of corporate bonds in ten securities houses in October 2021.
The ministry also inspected companies, with large or unsecured bond issuance and low financial strength, to give timely warnings to investors and service providers.
In order to improve the transparency of the mobilization of capital through the issuance of bonds, the ministry is considering a proposal to modify decree n Â° 153/2020 / NÄ-CP on the offering and trading of corporate bonds. in national and international markets in order to prevent companies from issuing large amounts. bonds without using the capital mobilized in the service of production and business.
According to experts, the Vietnamese corporate bond market has room for improvement in the future as its size remains small compared to other countries in the region. Corporate bonds are an important capital channel for businesses, especially real estate companies, but they have grown unsustainably.
Do Ngoc Quynh, general secretary of the Vietnam Bond Association, suggested that Vietnam should establish strict rules to reduce the negative impact of corporate bond products, while establishing flexible regulations for issuing bonds in order to effectively manage and supervise the corporate bond market.
Ensuring the healthy development of the bond market and the capital market requires the synchronous development of all components participating in the market, including state management agencies, companies and investors, according to Quynh.
While developing the equity market, market regulators must ensure the efficient functioning and necessary management of the market. If the management is too strict, the market cannot develop, but if the regulations are too loose, a crisis can arise, so management agencies should always observe and adjust the policy as necessary.
Firms publicly issuing bonds would have greater access to investors, but would also have to take on greater responsibilities, such as transparent disclosure of information and securing credit ratings, Quynh said./.