The Ministry of Finance launched a trading system for privately-placed corporate bonds on the Hanoi Stock Exchange (HNX) on July 19.

The system enables investors to trade in bonds on HNX almost like normal stocks, but in the format of an agreement with the T+0 payment mechanism, which means that the money or bonds will be immediately credited to investors’ accounts.

Addressing the launch ceremony, Minister of Finance Ho Duc Phoc said it is a necessary step and will help increase market liquidity while allowing management agencies and investors to find more information about the market to develop appropriate management and development policies as well as make effective investment decisions.

The development of the corporate bond market in a healthy, stable, effective, transparent, and sustainable manner will help create a diverse financial system and support businesses in mobilizing mid and long-term capital, thus helping ease their dependence on bank credit, according to Minister Phoc.

The system is also hoped to improve the publicity and transparency of the market, he added.

As of the end of 2022, outstanding debt in corporate bonds was approximately VND1.2 quadrillion ($50.74 billion), equivalent to some 12.6 per cent of GDP and 10 per cent of total outstanding credit.