Promoting the development of corporate bond and real estate markets

The Prime Minister has just signed a directive on continuing to implement solutions to enhance access to credit, and promote the development of the corporate bond and real estate markets in an efficient, safe, healthy, and sustainable manner.

The official dispatch stated that, in the past period, the Ministry of Finance, the Ministry of Construction , the State Bank of Vietnam (SBV), and other ministries, sectors, and localities have proactively and decisively implemented the directives and policies of the Government and the Prime Minister on strengthening access to credit capital and promoting the development of the corporate bond and real estate markets in an efficient, safe, healthy, and sustainable manner.

Thereby, the corporate bond market situation has gradually stabilized, and the real estate market has had positive changes.

However, the corporate bond and real estate markets, although improved, have not met expectations; credit growth is low, the economy 's ability to absorb capital continues to struggle, and bad debts tend to increase.

corporate bond fb.jpg — The Prime Minister has requested the acceleration of the development of the corporate bond market (Photo: TD)

The Prime Minister requested the Ministry of Finance to urgently review and thoroughly assess the payment and settlement capacity of corporate bond issuers, especially those bonds due for payment in late 2023 and 2024.

In addition, the Ministry of Finance needs to proactively develop scenarios, assess impacts, and have specific and effective plans and measures to handle issues within its authority, contributing to ensuring the safety and security of the financial and monetary markets; preventing passive responses, surprises, and negative impacts on the rapid and sustainable development of the economy.

In addition, it is necessary to closely monitor and accurately assess the payment capacity and plans of issuing enterprises, especially those facing difficulties and potential risks in repaying debts, in order to proactively take appropriate measures and solutions within the scope of authority to stabilize the market.

The Ministry of Finance needs to require businesses to prioritize resources to fully fulfill their obligations as stipulated, ensuring the legitimate rights and interests of investors and related entities, and the safety and security of the financial and monetary markets in accordance with current laws; and to implement practical and effective solutions to consolidate, strengthen, and restore investor confidence, promoting the safe, transparent, healthy, and sustainable development of the corporate bond market.

Furthermore, the Ministry of Finance needs to proactively strengthen, within its authority, the state management of corporate bond issuance, especially in combating corruption, abuse of policies for personal gain, and other unhealthy activities.

The Prime Minister also requested the State Bank of Vietnam to take the lead and coordinate with relevant agencies to manage credit growth rationally and effectively, striving to achieve the highest possible target, improve credit quality, and direct credit towards production and business sectors, priority sectors, and growth drivers of the economy (especially investment, consumption, exports, digital transformation, and green transformation...).

Closely monitor developments in the real estate market, corporate bonds, and real estate credit to develop solutions that both ensure the safety of the banking system and contribute to resolving difficulties, removing bottlenecks, promoting economic growth, and ensuring the healthy and sustainable development of the real estate and corporate bond markets.

The State Bank of Vietnam needs to continue conducting thorough research and developing feasible solutions to decisively and effectively implement the 120,000 billion VND credit program for lending to investors and homebuyers of social housing projects, worker housing projects, and projects to renovate and rebuild old apartment buildings; and continue to promote the implementation of the 15,000 billion VND preferential credit package for the forestry and fisheries sectors.

The Prime Minister also directed the Ministry of Construction to continue to closely and effectively coordinate with the National Assembly agencies and relevant agencies to review, revise and complete the draft Law on Housing (amended) and the draft Law on Real Estate Business (amended) for the 15th National Assembly to consider and approve at the 6th Session to ensure feasibility, practicality, maximum removal of difficulties and obstacles, and strong promotion of the development of a public, transparent, safe and healthy real estate market.

The Prime Minister also requested the Ministry of Natural Resources and Environment to promptly guide localities in resolving obstacles related to land allocation and leasing, especially in determining land prices, land management, and land use; to strengthen inspection and supervision of the handling of procedures for determining land prices for real estate projects; and to promptly detect and resolutely handle cases that cause difficulties, inconvenience, bureaucratic delays, and show signs of violating the law.

Corporate bond issuance surges by hundreds of trillions of VND, Ministry of Finance issues warning . In the first 10 months of the year, 70 businesses issued corporate bonds totaling 180.4 trillion VND. The volume of early redemptions was 190.7 trillion VND.

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