VietNamNet would like to introduce expert Pham Xuan Hoe and his ideas.
The Ministry of Finance (MOF) has been requested by the government to assess every type of bond, the maturity of corporate bonds privately issued in Q4 2022 and 2023, and suggest solutions to settle problems in an effective way.
The request aims at having solutions to solve problems in the short term related to corporate bonds, and promoting a healthy, effective and sustainable development of the bond market in the medium and long term.
Experts have suggested solutions, including the establishment of a guarantee fund, or a corporate bond market stabilization fund worth VND500 trillion like ones in China and South Korea.
Other experts recommend that Vietnam allow institutions such as DATC (Debt Asset Trading Company), SCIC (State Capital Investment Corporation), VAMC (Vietnam Asset Management Company) and commercial banks to buy back corporate bonds maturing soon and handle them like a type of special credit.
However, there still exists a problem for the solutions: where the money to settle the problem will come from and who will implement the solutions.
I think that in order to settle problems, it is necessary to recognize the problems. First, there needs to be an overall and detailed report about the real situation of the corporate bond market, with reliable data from real estate firms, enterprises, securities companies and credit institutions that have issued shares.
The report needs to clarify the amounts of bonds issued by real estate firms, the bonds issued privately and the mortgaged assets for bonds. The relevant ministries, such as MOF, SBV (State Bank of Vietnam), MOC (Ministry of Construction) and MONRE (Ministry of Natural Resources and the Environment), need to get directly involved in the treatment process.
The report, as shown in the Government’s Resolution 143, needs to be completed as soon as possible before the treatment process begins. The important thing to have is money.
If issuers are good enterprises with good financial capability, they can settle the problem themselves and will take responsibility for this. The thing the state needs to do is give support in land and administrative procedures.
As for the enterprises in difficulties, it is necessary to give support to them via the bank for investment and development, so they can complete projects, and sell products to get money to pay debts.
If enterprises lose liquidity, but have mortgaged assets, it would be better to help them to sell projects, including to foreign investors. The state will help them by reducing procedures for them.
The remaining enterprises should file for bankruptcy and collect assets for debt payment.
Tu Giang