With certain headwinds predicted for the global economy in 2023, Vietnam too, faces considerable challenges. But opportunities are also significant if concerted and appropriate solutions are taken, an expert has said.
A total of 420 private placements of corporate bonds worth approximately 244.6 trillion VND (10.43 billion USD) were made in 2022, accounting for 96% of the total issuance value and marking a year-on-year decrease of 66 %.
In response to lawmakers' invitation to comment, the Vietnam Chamber of Commerce and Industry (VCCI) has recently presented its views and suggestions to the draft amending Decree No 65 on corporate bonds.
Faster-than-expected GDP growth, the upgrade of Vietnam’s credit ratings, and big fluctuations in the corporate bond market are among notable events of the Vietnamese economy in 2022.
Country Director of the Asian Development Bank (ADB) in Vietnam Andrew Jeffries has attributed Vietnam’s economic growth in 2022 to a strong performance across sectors.
In 2022, despite many difficulties, Vietnam has managed to keep the macro-economic stability, with high economic growth, controlled inflation and ensured major balances, as well as political stability and protected security and national sovereignty, and enhanced external relations, Prime Minister Pham Minh Chinh said at the 5th Vietnam Economic Forum in Hanoi on December 17.
The Ministry of Finance (MoF) has just submitted to the Government a draft decree on trading private placement of corporate bonds in the domestic market and offering bonds to international markets.
Prime Minister Pham Minh Chinh has requested the Minister of Finance to submit measures ensuring the healthy, transparent, safe and effective operations of corporate bond market to him before December 20.
While it is urgent to tackle the liquidity problem, a fundamental solution is regaining investors’ confidence and stabilising the corporate bond market, experts said.
The Ministry of Finance has sent documents to bond issuers, asking them to utilise resources to fulfill their commitments to investors, said Deputy Minister Nguyen Duc Chi on solutions to difficulties in the corporate bond market at the Government's regular press conference in Hanoi on December 1.
After strong growth in the previous quarter, Vietnam’s currency bond market contracted 0.2% due to a decline in the Government bond market and slower growth in corporate bonds.
The Vietnamese financial market has experienced a bumpy road since the beginning of 2022 due to violations in the issuance and trading of corporate bonds by large corporations such as Tan Hoang Minh and Van Thinh Phat.
The Vietnam Stock Exchange (VNX) has applied for membership of the World Federation of Exchanges (WFE) in replacement of the Ho Chi Minh Stock Exchange (HOSE).
ADB experts said that government bonds increased by 7.4% compared to the previous quarter to 69.8 billion USD, mainly thanks to the increase in SBV bills.
A workshop aiming to promote trade connection between Vietnamese and Egyptian businesses was held in Cairo on September 8, attracting those specialising in agricultural products, seafood, construction material, household plastic, paper, packaging and fertiliser.
Secretary of the Party Committee of Quang Nam province Phan Viet Cuong on August 22 received Let Xaynhaphon, Secretary of the Party Committee of Laos’s Attapeu province, who is leading a delegation to visit the Vietnamese central locality.
Banks must tighten their assessment control of corporate bond investments to avoid excessive risk and the misuse of funds raised by firms, experts said.
Minister of Finance Ho Duc Phoc has responded in writing to a NA delegate of Lam Dong province on issues related to the management of capital, stock and bond markets.
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