Hanoi (VNA) – Several measures have been suggested atan online seminar held bythe Government Portal on May 28 to help thecorporate bond market maintain its stability and operate in line with law toaid economic growth.

The corporate bond market is a big source of capital for theeconomy. In the latter half of 2022, a “psychological” shock was recorded inthe private placement segment following many violations uncovered byauthorities.

The Government, the Prime Minister and management agencies havemade many important decisions to stabilise the market, ensure its compliancewith 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 corporategovernance, ensure legal issues and rescue response, and conduct annual audits.

It is a highly urgent need to build a foundationfor a healthy financial system, he said, expressing his belief that theGovernment of the current tenure can manage to do that and view currentchallenges as a chance to make strategic determination to create a goodfoundation for the time ahead.

Prof. Dr Hoang Van Cuong, Vice Rector of the Hanoi-based NationalEconomics University, held that it’s now the time for increasing resources forbusinesses, noting companies are sourcing capital mainly from the corporate bond marketand bank loans, and enterprises’ stable operations will help maintainmacro-economic balance.

He added the bond market requires both capablestakeholders and a legal environment for an ecosystem. Facing the recent “bondcrisis”, the Government has taken relatively timely and methodological moves toearly prevent the situation from getting worse.

Suggesting ways for shoring up the market, Deputy Minister ofFinance Nguyen Duc Chi said it is necessary to issue legal regulations on thebond market and make flexible and effective response to changes in reality.

Recently,the Government issued Decree 65/2022/ND-CP andDecree 08/2023/ND-CP, helping bond issuers and investors to have legal toolsand time to settle immediate difficulties in terms of money, liquidity, andcollateral, among others basing on the consistent principle of harmonising interestsand sharing risks.

Chi saidbond issuers must be responsible for their obligations and commitments towardsinvestors. State agencies need to monitor enterprises and the market to ensurethat obligations are fulfilled in accordance with law. Meanwhile, investorsthemselves should also adhere to legal rules so that the State can guaranteethe market’s transparency as well as the rights and interests of allstakeholders.

Facing difficulties in the real estate market, theGovernment has taken many measures to assist bond issuers such asextending debt and tax payment deadlines and reducing lending interest rates. Themoves have helped the corporate bond market regain stability, the official wenton.

At theseminar, participants also shared views on the stabilisation of macro-balancesand the results obtained so far. They perceived that the combination ofpolicies on macro-economic governance, especially the harmonious use of fiscaland monetary policies and an expanded fiscal policy like extending tax paymentdeadlines, cutting down taxes, and reducing land rents, is critical tomacro-economic stability./.