Drastic measures are needed for Ho Chi Minh City (HCMC) – the country’s largest economic hub - to address a series of problems in a bid to speed up recovery, experts have 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.
The Ministry of Finance is considering putting forward another proposal for further fuel duty cuts, Minister Ho Duc Phoc told the 15th National Assembly during its third sitting in Hanoi on June 8 amid concerns over soaring fuel prices.
An official of the Ministry of Public Security (MPS) mentioned measures for cracking down on fake news while another from the Ministry of Finance (MoF) highlighted ways to ensure the transparency of the financial, stock, and bond markets at the Government’s monthly press conference on April 29.
Besides continuously giving risk warnings to investors about buying corporate bonds in the market, authorities have also issued many regulations to restrict the issuance of corporate bonds. However, in reality, many investors still purchase corporate bonds, despite potential risks.
Recently, the conditions for corporate bond issuance to the public have been tightened by the State. This is a move to reduce risks for investors, especially for individual investors, so the number of issued corporate bonds has also fallen sharply. However, in the context that deposit interest rates remain at a low level, many enterprises have issued corporate bonds with high-interest rates to attract capital.
Although Vietnam's corporate bond market is the smallest among the six corporate bond markets in the ASEAN, it has recently developed extremely rapidly.
While stocks of many enterprises and even banks have dropped to below face values, the bond market has warmed up as enterprises raced to mobilize capital through bond issuance, especially small enterprises.
In January alone, the total corporate bond issuance exceeded VND13.37 trillion, of which real estate enterprises issued more than VND7.36 trillion, accounting for 55 percent of the total issuance in the market.