Korea and China have issued policies to support the market and businesses amid growing worries about a credit crunch in the bond and short-term money markets.

Bank stocks are sold out strongly, despite good business results, due to pressure of corporate bonds nearing maturity. Many stocks even fell to the lowest range in last two years as investors feared cash flow risks.

After cancellation of bonds issued by Tan Hoang Minh and the issuance of a new decree on bond market management, businesses have been rushing to buy back bonds before they become mature.

The fresh and stringent legislative framework for the corporate bond market is slated to pave the way for a better debt sector in Vietnam, while the interests of issuers and investors could be safeguarded.

From the end of this year onwards, real estate businesses will face a worrisome period due to cash flow shortages as corporate bonds will begin to mature.

The State Bank of Vietnam (SBV) has recently made a new move regarding open market operations (OMO). Valuable papers are purchased at a competitive interest rate, instead of a fixed rate as before.

Since 2018 the Government has issued three Decrees to regulate the Corporate Bonds market which has now grown substantially.

When several banks announced the issuance of thousands of billion dong to mobilize medium and long-term capital at high interest rates, a rush for buying bonds followed, which turned into a frenzy towards the end of 2021.

Many international credit rating organisations want to join the Vietnamese market, attendees heard at a seminar in HCM City on Friday.

The year 2020 has seen a ‘bond issuance movement’. Businesses have rushed to issue shares to mobilize capital as loose requirements made it easier than ever to do this.

While in developed markets corporate bonds act as the major channel that conducts capital for the economy, in Vietnam they are still in a very early stage of development.

The COVID-19 pandemic continues to drag on local currency bond markets in emerging East Asia, including Vietnam, as investment sentiment globally and in the region wane and containment measures limit economic activity.

The coronavirus (COVID-19) pandemic continues to drag on local currency bond markets in emerging East Asia, including Viet Nam, as investment sentiment globally and in the region wane and containment measures limit economic activity.

The novel coronavirus (COVID-19) pandemic and deepening global economic uncertainty are putting great pressure on Viet Nam’s local currency bond...

The experts attending the Vietnam Investment Professionals Forum (VIPF) all predicted that the picture of the Vietnamese stock market would be bright in 2020 with the VN Index likely to exceed 1,200 points.

While foreign investors continue selling in the share market, they have been buying more than selling in the bond market since early 2019.

This expansion was due mainly to a 4% on-quarter growth in government bonds to US$51 billion as the central bank increased issuance of bills.

Since issuing corporate bonds has become easy thanks to open regulations, it is necessary to tighten control over bond issuance.

VietNamNet Bridge - Many banks, fund management companies, insurance and securities companies have been setting up debt funds.