Nearly 227.6 trillion VND (9.6 billion USD) worth of corporate bonds is going to expire this year, of which about 19 trillion VND matured or was repurchased before maturity in the first two months of the year, according to data compiled by the Hanoi Stock Exchange (HNX).
The Government has issued a decree on the amendment, supplementation and cancellation of some articles of decrees related to the private placement and trading of privately placed corporate bonds in the domestic market and offering of corporate bonds to the international market.
The Ministry of Finance has conducted procedures to adjust and supplement the Government’s Decree 65 regarding the private issuance of corporate bonds, Deputy Minister Nguyen Duc Chi said at a government regular press conference in Hanoi on February 2.
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.
The Ministry of Finance (MoF) is coordinating with ministries and agencies to assess the market situation to consider and submit to the Government amendments and supplements of a number of articles of the decree on offering and trading private placement corporate bonds in the domestic and foreign markets.
Credit growth reached about 13% this year as of December 27, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu told a press conference in Hanoi on tasks for the banking sector next year.
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.
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.
A huge amount of expired corporate bonds due for payment in the last months of this year and the whole of 2023 and 2024 are putting great pressure on issuers.
Ordinary citizens face higher risk in the current stock market environment, said the Ministry of Finance in a recent report released after a number of recent high-profile corporate scandals.
Banks must tighten their assessment control of corporate bond investments to avoid excessive risk and the misuse of funds raised by firms, experts said.
National Assembly Chairman Vuong Dinh Hue urged for a healthy banking system in which domestic lenders act as key players and operate in a healthy, effective and transparent manner when assessing the answers of State Bank Governor Nguyen Thi Hong during the Q&A session of the 15th NA in Hanoi on June 9.
Total outstanding value of corporate bonds by the end of April 2022 reached 320.4 trillion VND (13.8 billion USD), accounting for a small proportion of the country’s total outstanding credit of 2.86 percent, according to the State Bank of Vietnam.
The scale of capital mobilisation through corporate bonds is forecast to decrease sharply, but there will be a drastic change in quality, according to a study on the corporate bond market by FiinRatings.
In 2021, corporate bond yields were at their lowest level in history at just 7.86 percent a year. The interest rate may have created a bottom and will support corporate bond yields inching up in 2022.
Over 16.91 billion USD has been raised from sales of corporate bonds in the first nine months of this year, according the Vietnam Bond Market Association (VBMA).
The realty sector recorded a strong rise in the value of corporate bonds issued in the first six months of 2021, but risks still abound amid the impact of COVID-19 on production and businesses.
The value of corporate bonds issued in October was 9.5 trillion VND (409 million USD), down 12.8 percent from September, according to the Hanoi Stock Exchange (HNX).
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