MOF is collecting opinions on the amendments for Decree 65 (that amended Decree 153 issued in 2020) on private offering of corporate bonds in the domestic and international markets.

In current conditions, when the market is facing problems in liquidity, in order to help enterprises solve difficulties in payment for bonds that will mature in 2023-2024, MOF has proposed postponement of one year of the regulations in Decree 65 on defining the status of professional securities investors.

Meanwhile, the Ministry of Planning and Investment (MPI) said the regulation is necessary. 

In reply, MOF said there are many ways to determine the status of professional securities investors. As for individual investors, in addition to securities portfolio, they can also prove their professional investor status by taxable income and securities practicing certificates.

“At present, there is no regulation on information concentration about professional investors and there is only a national database on the population managed by the Ministry of Public Security. Therefore, it is impossible to synthesize figures about investors who have sufficient or insufficient conditions, as suggested by MPI,” MOF explained.

MPI also said that it is necessary to set criteria for determining the extension of bonds. 

On this issue, MOF stressed that extending bond terms by no more than 2 years would help ease the amounts of matured bonds expected to peak in 2023-2024. 

If enterprises have difficulties in debt payment, they can negotiate with investors to extend the debt payment period to 2025-2026, so as to avoid the peak time of 2023-2024. 

They can also negotiate to delay or change some conditions of bonds.

“According to economists, Vietnam will maintain the current high economic growth rate and enterprises will be able to basically solve problems in liquidity and debt restructuring by 2025-2026,” MOF said.

The National Financial Supervisory Commission agrees on the one-year postponement of the implementation of the regulation on investors’ status; compulsory credit rating; and the bond distribution time period.

Luong Bang