40
Some comments are that the market of Vietnam’s
stock market has not fully developed yet, the
market information is lacking and scattered. This
has led that both issuers and investors has been
encountering difficulties in selling and buying
bonds, which affects the transparent, professional
development of the market.
From the practice of consultancy and trading
on the corporate bond market, the biggest
difficulty in issuing bonds is that investors have
not got confidence in business activities, the
issuer of bonds, especially when many non-
specialized investors are interested in corporate
bonds. In order to pull this group of investors into
the bond market, transparency in information,
as well as quality bond products is needed.
In addition, current regulations on issuance
of bonds are limiting the ability of some good
business. According to regulations, enterprises
allowed to issue bonds must meet the following
conditions: Business activities of the next year
must be profitable; enterprises failing to pay or
THE SUPPORT SOLUTIONS FOR THE DEVELOPMENT
OF THE CORPORATE BONDMARKET
NGUYEN THI PHUONG DZUNG*
In order to shape the policy system to support the vibrant, professional and healthy development of
the corporate bond market, the Ministry of Finance is widely consulted to finalize the draft decree
replacing the Decree No. 90/2011 / ND-CP on issuance of corporate bonds before submitting them to
the Government for consideration and promulgation. The draft decree shows many positive steps and
promises to pave the way for the vibrant and professional development of the corporate bond market
which still has many potentials but has not yet been promoted.
Key words: Corporate bond, bond market, capital mobilization, investment, business
Received: December 22
nd
, 2017
Revised: January 4
th
, 2018
Accepted for publication: January 5
th
, 2018
The size of the corporate bond market
is small compared to the potentials
According to the Ministry of Finance, the
issuance of Decree 90/2011/ND-CP dated 14
October 2011 on the issuance of corporate bonds
has positively impacted on the development
of the bond market, increasing the activeness
of businesses in mobilizing bond capital.
Implementing Decree 90/2011/ND-CP, capital
mobilization through bond issuance are
increasingly professional; interests businesses
and has been selected by businesses. In the period
from 2011 to now, the corporate bond market
has experienced the growth and development in
both size of the capital mobilization and number
of enterprises issuing bonds compared to the
previous period. Specifically, since the issuance
of Decree 90/2011/ND-CP by the end of 2016,
there have been 367 registrations of individuals
issued in the domestic market with VND 183,550
billion. In particular, there are 359 issuances with
the actual issuance volume of 129.636 billion.
Outstanding domestic debt issued to the end of
2016 is VND237,421 billion, equivalent to 5.27%
of GDP.
Besides the positive results, the reality of the
development of the corporate bond market has
been inhibited by a lot of difficulties and obstacles.
Better
Stable
Worse
Q4compared toQ32017
Q12018compared toQ42017
EVALUATION OF MANUFACTURING AND MANUFACTURING
ENTERPRISES ON PRODUCTION AND BUSINESS (%)
Source: Review of Finance
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