Bonds of an enterprise. Corporate bonds are an important capital channel for enterprises. (Photo: chinhphu.vn) Accordingly,the ministry is drafting a circular to establish a private corporate bondmarket for professional securities investors.
Itis also upgrading a corporate bond information page and a listing and tradingsystem of corporate bonds.
Inorder to strengthen the inspection and supervision of the corporate bondmarket, the ministry has directed the State Securities Commission to inspectthe supply and demand of corporate bonds at ten securities companies in October2021.
Theministry also inspected enterprises, whose bond issuance was large or withoutcollateral and had weak financial strength, to give timely warnings toinvestors and service providers.
Toenhance the transparency in capital mobilisation through bond issuance, theministry is considering a proposal to amend Decree No 153/2020/NĐ-CP onthe offering and trading of corporate bonds in the domestic and internationalmarkets to limit enterprises from issuing a large amount of bonds withoutusing the mobilised capital to serve production and business.
Accordingto experts, the Vietnamese corporate bond market has room to expand in thefuture as its size remains small compared to other regional countries.Corporate bonds are an important capital channel for enterprises,especially real estate firms, but have developed unsustainably.
DoNgoc Quynh, Secretary General of the Vietnam Bond Association, suggested Vietnamshould set tight rules to diminish the negative impact of corporate bondproducts, while constructing flexible regulations for bond issuance toeffectively manage and supervise the corporate bond market.
Ensuring thehealthy development of the bond market and the capital market requires thesynchronous development of all components participating in the market,including State management agencies, businesses, and investors, according to Quynh.
Whiledeveloping the equity market, market regulators must ensure effective operationand necessary management over the market. If the management is too tight, themarket cannot develop, but if the regulations are too loose, a crisis canoccur, thus management agencies must always observe and adjust the policy asneeded.
Businesses issuing bondspublicly would have wider access to investors but also have to beargreater responsibilities, such as transparent information disclosure, andensuring credit ratings, Quynh said./.
VNA
