Banking & Finance

According to the Vietnam Association of Realtors (VARs), in the long run, corporate bonds will remain an effective capital mobilization channel. Compared to other countries in the region, the size of Vietnam’s corporate bond market is still quite modest. It is therefore necessary to adopt synchronous and effective solutions for the market’s healthy development.

Many proposals have been made by the Ho Chi Minh City Real Estate Association (HoREA) to control Vietnam’s corporate bond market, such as removing obstacles and inadequacies in legal institutions, amending the Law on Securities and the Law on Enterprises, supplementing regulations on credit rating assessments for bond issuers, adopting more stringent requirements on release conditions, and narrowing the purpose of corporate bond issuances.

The Techcom Securities Company (TCBS) and the FiinGroup Company have signed a cooperative agreement, especially in the credit rating segment, to contribute to the building of a healthy and sustainable bond market.

State Bank of Vietnam (SBV) Governor Nguyen Thi Hong has said that the size of Vietnam’s corporate bond market is still small compared to elsewhere in the region and this puts major pressure on capital demand in the banking system. Other shortcomings include the absence of a specialized corporate bond market and the limited participation of foreign investors.

Minister of Finance Ho Duc Phoc has said that Vietnam’s financial market is developing towards striking a balance between the money market and the capital market and between the stock market and the bond market, making an important contribution to restructuring public debt.

Prime Minister Pham Minh Chinh has asked the Ministry of Finance to review and amend inadequate existing regulations, strengthen sanctions on violations of the law on the stock market to protect investors, and urgently introduce measures to upgrade Vietnam’s stock market from frontier market to emerging market status.