The Prime Minister requested to rectify the corporate bond market and land auction

The Prime Minister has just issued Official Letter 304/CD-TTg dated April 7, 2022 of the Prime Minister on the rectification of the corporate bond market and the auction of land use rights.

The Prime Minister requested to correct the operation of the corporate bond market and land auction (Illustration image)

The dispatch clearly states that the corporate bond market is an important medium and long-term capital mobilization channel for enterprises in accordance with the Government's policy on balanced development between the capital market and the money and credit markets. However, recently, the issuance of corporate bonds has legal violations and the auction of land use rights has many shortcomings and potential risks.

On April 5, 2022, the Investigation Police Agency of the Ministry of Public Security issued a decision to prosecute the case of fraud to appropriate property, which occurred at Tan Hoang Minh Group and related organizations and units, investigating and verifying a number of acts showing signs of law violation related to the issuance of bonds and mobilizing money of investors of member companies of Trading Service Limited Liability Company. Tan Hoang Minh Hotel.

Accordingly, in order to ensure a stable, healthy, transparent, safe, and sustainable corporate bond market operation, and land use right auctions in compliance with the law, the Prime Minister request:

- The Minister of Public Security directs the police units and localities to:

+ Expeditiously coordinate with relevant agencies in investigating and verifying to strictly handle violations in accordance with the provisions of law, ensuring the issuance, investment and use of corporate bond capital. business for the right purposes, efficiently, healthy, transparent, stable and safe, contributing to the development of production and business, promoting economic growth and stabilizing the macro-economy.

+ Strengthen understanding of the situation, promptly prevent, detect, prevent and strictly handle acts of taking advantage of and violating legal regulations in the auction of land use rights in order to make profit and cause market disturbances. .

- The Minister of Finance, the Governor of the State Bank of Vietnam directs functional agencies and units to closely monitor and supervise developments in the financial and monetary market, issuance and investment activities. , distribute, trade and use corporate bond capital, ensuring compliance with applicable laws;

Actively review the legal framework, develop response scenarios associated with drastic implementation of solutions to stabilize, develop the market and stabilize investor sentiment; to step up the work of information, propaganda and timely provision of official information on the macroeconomic situation and capital market; strengthen inspection, inspection, supervision, information disclosure and strictly handle violations.

The Minister of Finance and the Chairman of the State Securities Commission shall direct the following functional agencies and units:

+ Urgently inspect, examine and supervise the compliance with the law on issuance, investment, distribution, transaction and use of capital obtained from bond issuance, especially private placement of bonds of real estate enterprises, of credit institutions related to real estate enterprises, enterprises with large issuance volume, high interest rates, enterprises with loss-making business results, enterprises with Issuing business has no collateral or collateral is not of good quality... in accordance with the Prime Minister's direction at Official Dispatch 8857/CD-VPCP dated December 3, 2021, reporting to the Prime Minister Results done before April 15, 2022.

+ Urgently review legal provisions related to the corporate bond market and the issuance and investment of corporate bonds in order to promptly amend and supplement according to its competence or propose the competent authorities to amend, supplement to enhance the effectiveness and efficiency of management and supervision of the corporate bond market, ensuring a healthy, transparent and safe market development;

There are sanctions for early warning, risk management and strong and strict handling of violations of the law. Report to the Prime Minister the review results before April 30, 2022.

+ Proactively disclose information related to the above case and implement solutions to stabilize the psychology of domestic and foreign investors, protect the legitimate interests of investors in accordance with the law.

+ Enhance the effectiveness of inspection, examination and strictly handle violations in the corporate bond market in accordance with the law; give early warning and have a plan to promptly handle risks that may arise, ensuring market safety. Actively coordinate closely and provide information, records and documents according to regulations to the authorities in the process of inspection, examination and investigation of cases.

- The Minister of Natural Resources and Environment directs to review, strengthen the inspection and inspection of activities of organizing auctions of land use rights and real estate in localities.

For cases with abnormal manifestations, causing market instability, promptly verify and clarify violations, strictly handle according to the provisions of law to prevent profiteering.

Review legal provisions related to land use right auction, promptly detect inadequacies and omissions, advise and propose competent authorities to amend, adjust, supplement and perfect the system the law on auction of land use rights in order to effectively prevent and combat abuses and violations for self-seeking purposes.

- Governor of the State Bank of Vietnam:

+ Direct the inspection, examination and close supervision of credit institutions investing in corporate bonds, participating in activities of providing underwriting, investment, distribution services... corporate bonds enterprises, especially bonds issued by real estate enterprises, enterprises with large issuance volume, high interest rates, enterprises with loss-making business results, and issuing enterprises without financial resources. guaranteed product…

+ Reviewing credit lending activities of credit institutions for investors to participate in land use right auctions, promptly correcting and strictly handling violations of regulations on credit lending .

- Presidents of People's Committees of provinces and centrally run cities shall review, inspect and strengthen the organization of auctions of land use rights in their localities to ensure compliance with the law, publicity and transparency; promptly detect and strictly handle cases of violations of law provisions in land auctions, prevent acts of taking advantage of auctions to make profit and destabilize the market.

- The Minister of Information and Communications directs the press agencies to promptly report truthfully and accurately; strictly handle cases of reporting and posting in contravention of regulations, negatively affecting investor psychology and stabilizing the financial market.

See details at Official Dispatch 304/CD-TTg dated April 7, 2022.


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