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Finance Minister Ho Duc Phoc speaks at the event. (Photo: VNA) |
The system enables investors to trade bonds on the HNX almost like normal stocks, but in the format of agreement with the T+0 payment mechanism which means that the money or bonds will be immediately credited to investors’ accounts.
The launch of the system demonstrates the ministry’s strong resolve in boosting the financial market in general and the stock market, in particular, to create a medium- and long-term capital mobilization channel for the national economy, said Minister Ho Duc Phoc.
The system will help facilitate the management of competent agencies as well as the supervision of businesses and people, thus improving the publicity and transparency of the market, he added.
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At the inaugural ceremony for the separate corporate bond trading system. (Photo: VNA) |
According to the minister, as of the end of 2022, the outstanding debt of corporate bonds was approximately VND1.2 quadrillion (US$50.74 billion), equivalent to about 12.6 percent of the GDP, and 10 percent of the total credit debt.
In her remarks, Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), said the new system is expected to help improve the responsibility of investors in bond trading.
Chairman of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) Pham Quang Dung said the bank has developed a specialized payment system for the separate corporate bond market based on the most advanced payment standards.
There will be separate bond trading sessions on the HNX from Monday to Friday each week, excluding public holidays, lasting from 9:00 am to 11:30 am and from 1:00 pm to 2:45 pm.
Over the past three years, Vietnam’s stock market has experienced many ups and downs. However, it still attracts a lot of people's attention. The number of investors participating in the market has reached the target of over 5 percent of the population, which exceeds the 3-year plan. There was a trading session that even saw liquidity up to more than VND30 trillion, helping many businesses mobilize medium and long-term capital.
Since the second quarter of 2022, the domestic stock market has entered a period of decline in both scores and liquidity, making it more difficult to raise capital through the market.
The SSC has developed a strategy to develop the stock market towards 2030 and is waiting for the Prime Minister's approval. One of the important ideas of this strategy is the concentration on sustainable development, not focusing too much on growth in number and scale.
