About 70 enterprises issued bonds worth 180.4 trillion VND in the first ten months of this year. (Photo: VNA) Nguyen Hoang Duong, deputy director of the Banking and Financial InstitutionsDepartment under the Ministry of Finance, said that the market started to seepositive signs from the second quarter of this year with increases in bondissuance volume.
Statistics showed that about 70 enterprises issued bonds worth 180.4 trillionVND (7.6 billion USD) in the first ten months of this year and bought 190.7trillion VND of bonds before maturity, an increase of 30.3% over the sameperiod last year.
In October alone, the private bond issuance value totalled 41 trillion VND,17 trillion VND higher than September.
“The market is recovering thanks to the Government’s drastic policies andchanges in market participants,” Duong said.
The corporate bond market has been frozen after the breakout of violations inissuance by some big real estate developers.
However, the Government took drastic measures to stabilise the macro-economyand operate fiscal and monetary policies with flexibility to support productionand business, enabling enterprises to have cash flow for debt repayment.
Most importantly, market participants were more aware of their rights andobligations, which would help the market develop transparently and sustainably,he said.
Duong urged investors to study regulations, and information andfinancial capacity of issuers carefully and be responsible for their investmentdecisions.
He noted that the risk of bonds is the risk associated with the bond issuers,not to the bond distributors.
The finance ministry would continue to work with relevant ministries andagencies to ensure stability, transparency, safety and sustainability for thecorporate bond market which would help attract medium- and long-term capitalfor investment and development, he said.
The ministry would closely watch the market developments and ask enterprises toarrange resources for payment following the established regulations.Enterprises, in case of facing difficulties in repayment, must negotiate withinvestors on solutions for bond restructuring.
Besides, inspection would be enhanced to improve quality of bond issuance andservices to consolidate investors’ confidence./.
He noted that the risk of bonds is the risk associated with the bond issuers,not to the bond distributors.
The finance ministry would continue to work with relevant ministries andagencies to ensure stability, transparency, safety and sustainability for thecorporate bond market which would help attract medium- and long-term capitalfor investment and development, he said.
The ministry would closely watch the market developments and ask enterprises toarrange resources for payment following the established regulations.Enterprises, in case of facing difficulties in repayment, must negotiate withinvestors on solutions for bond restructuring.
Besides, inspection would be enhanced to improve quality of bond issuance andservices to consolidate investors’ confidence./.
VNA
