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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
repay insufficient maturities for three consecutive
years will not be entitled to issue bonds to foreign
investors, except for issuance to selected financial
institutions. This is stipulated in the Enterprise
Law but not regulated in Decree 90/2011/ND-CP,
causing concern for both issuers and investors.
Not to mention, there are no legal regulations on
financial institutions
In addition, bond issuers must meet the
condition that the financial statements are
audited. However, there are businesses being in
the process of investment, so business operation
in the previous year has not yet profitable.
These enterprises have investment and feasible
THE SUPPORT SOLUTIONS FOR THE DEVELOPMENT
OF THE CORPORATE BONDMARKET
NGUYEN THI PHUONG DUNG*
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: June 29
th
, 2018
Revised: September 27
th
, 2018
Accepted for publication: October 8
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
th
October 2011 on the issuance of corporate bonds
has positively impacted on the development of the
bondmarket,increasingtheactivenessofbusinesses
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.
Some comments are that the market of Vietnam’s
stock market has not fully developed yet, the
market information is lacking and scattered. This
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