The Minister of Finance stated that key solution groups will be implemented to stabilize and develop the corporate bond market, alongside proposals to ensure the stable and healthy development of the real estate market.
Minister Ho Duc Phoc: The Ministry of Finance will focus on deploying 6 core solution groups to stabilize and develop the bond and real estate markets. Photo: VGP/Nhat Bac
Developing an open, transparent, and sustainable corporate bond market
On February 17, Prime Minister Pham Minh Chinh chaired the national online conference on "Resolving bottlenecks and promoting the safe, healthy, and sustainable development of the real estate market."
Speaking at the conference, Minister of Finance Ho Duc Phoc stated that in the coming time, the Ministry of Finance will continue rolling out solutions to stabilize and build an open, transparent, safe, and sustainable corporate bond market. This aims to unlock medium- and long-term capital for investment and development, centering on several core solution groups:
First, regarding macroeconomic stability, the Ministry of Finance will continue coordinating closely with the State Bank of Vietnam, the Ministry of Planning and Investment, and relevant ministries and sectors to implement fiscal, monetary, and other macroeconomic policies. The goal is to maintain macroeconomic stability, ensure major economic balances, stabilize the investment environment, and guarantee policy consistency so investors can confidently participate and invest in the market.
Second, regarding the improvement of the legal and institutional framework, the Ministry of Finance will synchronously roll out policy enhancements geared toward tightening corporate bond market supervision, raising the quality of issued instruments, and improving service provider quality. The Ministry is currently submitting to the Government for review and promulgation a Decree amending and supplementing several provisions of Decree No. 65 on private corporate bond placements to help address existing market bottlenecks.
Third, reviewing and refining mechanisms and policies to cultivate professional and long-term investors (investment funds) in order to create sustainable investment demand for the market.
Fourth, the Ministry of Finance will continue monitoring and requiring enterprises to allocate all resources to settle due bond principals and interest in compliance with the law, protecting investors' rights. If facing payment difficulties, enterprises must actively engage and negotiate with investors to agree on bond restructuring plans. Concurrently, the Ministry directs the stock exchanges to urgently build and operationalize a private corporate bond trading system to foster a transparent, secure secondary market, strengthen oversight capacity, and minimize risks.
Fifth, regarding inspection and supervision, the Ministry continues directing the State Securities Commission and functional units to conduct focused, key inspections of issuing enterprises and service providers. This will elevate issuer quality and market service standards, thereby rebuilding investor confidence. Post-inspection, any violations discovered will be publicized across the market. Additionally, the Ministry will bolster communications to steady public sentiment, restore investor trust, enable firms and investors to confidently mobilize and deploy capital, and expand the participation of institutional and professional investors—prioritizing long-term players such as investment funds, voluntary pension funds, and insurance firms.
Formulating regulations on financial safety prudential ratios in construction and real estate
Sixth, alongside solutions to stabilize and grow the corporate bond market, synchronized mechanisms and policies must continue to be implemented to reinforce macroeconomic foundations and support the broader market, including the real estate sector.
Recently, many real estate developers with limited resources were licensed to execute projects exceeding their financial capacity multiple times over, relying primarily on loans, bond issuances, or pre-sales advances from home buyers. This led to operational and cash-flow vulnerabilities, generating potential liquidity risks for financial markets, bank credit, and the corporate bond market.
Accordingly, to foster a stable, healthy real estate market, the Ministry of Finance recommends reviewing and amending policy obstacles in the Land Law, the Housing Law, and the Law on Real Estate Business to enhance market management efficiency and facilitate transparent development.
In the immediate term, according to the Finance Minister, it is necessary to review legal hurdles so developers can immediately proceed with stalled or legally tangled projects. This will bring projects to completion, allow inventory sales, and resolve financial and liquidity crunches.
The Ministry also recommends studying and formulating regulations on financial safety prudential ratios in the construction and real estate sectors, including leverage and capital mobilization caps when granting real estate business licenses and project investment approvals, ensuring enterprises possess adequate financial standing to carry out projects. Concurrently, the Ministry of Construction and local authorities are urged to supervise compliance with these financial safety metrics. Combined with harmoniously managed credit policies, this will help the real estate sector overcome this challenging period.
Source: http://moc.gov.vn/vn/tin-tuc/1184/75151/6-nhom-giai-phap-de-on-dinh--phat-trien-thi-truong-trai-phieu-doanh-nghiep-va-thi-truong-bat-dong-san.aspx