At a seminar on the development of the corporate bond on September 13, analysts said the market has grown 30-35 per cent annually in recent years. If such growth can be maintained, the total market size will reach VND11.2 quadrillion ($473.68 billion) in the next six years, thus easing capital pressure on banks and credit institutions.
The Ministry of Finance will compile a list of bond-issuing businesses showing unusual signs, such as “hidden” issuances by subsidiaries in the same ecosystem, issuances with high interest rates, and outstanding loans many times larger than equity. It has also assigned the State Securities Commission to review and amend regulations relating to the offering and trading of corporate bonds.
According to a report from the Ministry of Finance (MoF) sent to the Prime Minister, a number of real estate businesses have issued bonds in volumes many times higher than equity, creating risks not only for investors but also for the financial system. The ministry has adopted many solutions to correct the market in 2022, including submitting a proposal to the Prime Minister on amending the legal framework on certain matters.