Topic: bond market

Vietnam’s bond market can be put back on the right track, according to many experts.

Ministry to regularly monitor market to identify infringements.

Ministry adopting measures to stabilize and promote the development of Vietnam’s corporate bond market.

Commenting on Decree No. 65/2022/ND-CP, dated September 16 and amending and supplementing a number of articles in Decree No. 153/2020/ND-CP on offering and trading privately-issued corporate bonds in the domestic market and offering for sale corporate bonds to the international market, analysts believe the new Decree will tighten the bond market, make it healthier, and present opportunities for capable businesses with transparent issuance records.

The Asian Development Bank (ADB)’s Asia Bond Monitor report released on September 14 shows that the local currency bond market rose 8.1 per cent in the second quarter of 2022 compared to the previous quarter and reached $99.5 billion. It grew 31.6 per cent year-on-year in the first eight months.

Mr. Don Lambert, Head of the Private Sector Development Department at the Asian Development Bank (ADB) in Vietnam, told the “Development of the corporate bond market - Trust and responsibility” seminar on September 13 that Vietnam’s capital market has developed rapidly and is expected to grow further in the future. He also said that the development of credit rating agencies and the bond market are not synchronized and the country needs more of the former.

According to the Viet Dragon Securities Company (VDSC), rising oil prices, VND devaluations, increasing inflation, and falling exports could be major factors in the immediate future and may affect the bond market over the remainder of the year.

According to FiinRatings, though it will not be as vibrant as it was in the second half of 2021, the corporate bond market will gradually return to greater activity at the beginning of the fourth quarter of this year when the amended Decree No. 153 is issued and officially takes effect.

Vietnam’s corporate bond market has seen positive changes from a series of corrective measures by management units. Bonds have been issued again since May, while the volume issued in June was 55 per cent higher than in April.