Illustrative image (Photo: vneconomy.vn)Hanoi – Several measures have been suggested at
an online seminar held by
the Government Portal on May 28 to help the
corporate bond market maintain its stability and operate in line with law to
aid economic growth.
The corporate bond market is a big source of capital for the
economy. In the latter half of 2022, a “psychological” shock was recorded in
the private placement segment following many violations uncovered by
authorities.
The Government, the Prime Minister and management agencies have
made many important decisions to stabilise the market, ensure its compliance
with law, and enhance people’s trust to support the economy.
Speaking via videoconference, Assoc. Prof. Dr Vu Minh Khuong,
a lecturer at the Singapore-based Lee Kuan Yew School of Public Policy, said to help enterprises avoid committing violations, their leaders should gain a thorough understanding of corporate
governance, ensure legal issues and rescue response, and conduct annual audits.
It is a highly urgent need to build a foundation
for a healthy financial system, he said, expressing his belief that the
Government of the current tenure can manage to do that and view current
challenges as a chance to make strategic determination to create a good
foundation for the time ahead.
Prof. Dr Hoang Van Cuong, Vice Rector of the Hanoi-based National
Economics University, held that it’s now the time for increasing resources for
businesses, noting companies are sourcing capital mainly from the corporate bond market
and bank loans, and enterprises’ stable operations will help maintain
macro-economic balance.
He added the bond market requires both capable
stakeholders and a legal environment for an ecosystem. Facing the recent “bond
crisis”, the Government has taken relatively timely and methodological moves to
early prevent the situation from getting worse.
Some participants in the online seminar (Photo: VNA)Suggesting ways for shoring up the market, Deputy Minister of
Finance Nguyen Duc Chi said it is necessary to issue legal regulations on the
bond market and make flexible and effective response to changes in reality.
Recently,
the Government issued Decree 65/2022/ND-CP and
Decree 08/2023/ND-CP, helping bond issuers and investors to have legal tools
and time to settle immediate difficulties in terms of money, liquidity, and
collateral, among others basing on the consistent principle of harmonising interests
and sharing risks.
Chi said
bond issuers must be responsible for their obligations and commitments towards
investors. State agencies need to monitor enterprises and the market to ensure
that obligations are fulfilled in accordance with law. Meanwhile, investors
themselves should also adhere to legal rules so that the State can guarantee
the market’s transparency as well as the rights and interests of all
stakeholders.
Facing difficulties in the real estate market, the
Government has taken many measures to assist bond issuers such as
extending debt and tax payment deadlines and reducing lending interest rates. The
moves have helped the corporate bond market regain stability, the official went
on.
At the
seminar, participants also shared views on the stabilisation of macro-balances
and the results obtained so far. They perceived that the combination of
policies on macro-economic governance, especially the harmonious use of fiscal
and monetary policies and an expanded fiscal policy like extending tax payment
deadlines, cutting down taxes, and reducing land rents, is critical to
macro-economic stability./.
