To urgently review the solvency of corporate bond issuers in Vietnam

To urgently review the solvency of corporate bond issuers in Vietnam (Internet image) 

On November 23, 2023, the Prime Minister issued Official Telegram 1177/CD-TTg on continuing to drastically implement solutions to increase access to credit capital, promoting the development of effective, safe, healthy, and sustainable corporate bond and real estate markets.

To urgently review the solvency of corporate bond issuers in Vietnam

The Prime Minister requests the Ministry of Finance to preside and coordinate with relevant agencies to carry out the following:

- Continue to strongly deploy and operate expansionary fiscal policy in a reasonable, focused, key, and effective manner, coordinated synchronously, closely, and in harmony with monetary policy to promote investment, especially non-state investment, promoting public investment to serve growth, macroeconomic stability, inflation control, ensuring major balances of the economy, promoting recovery, and restoring production and business activities of businesses and people.

- Urgently review and thoroughly and specifically evaluate the solvency and payment capacity of corporate bond issuers, especially bonds due for payment in late 2023 and 2024; proactively develop scenarios, evaluate impacts, and have specific and effective plans and measures to handle according to authority, contributing to ensuring the safety and security of financial and monetary markets; do not let passivity, surprise, and negativity affect the rapid and sustainable development of the economy.

- Closely monitor and accurately evaluate the ability and payment plans of issuing businesses, especially businesses that are still facing difficulties and may have risks in their ability to repay debt to proactively take appropriate measures and solutions according to authority to stabilize the market, requiring businesses to prioritize resources to fully fulfill their obligations according to regulations, ensuring the legal and legitimate rights and interests of investors, related entities and the safety and security of financial and monetary markets in accordance with current legal regulations, there are practical and effective solutions to consolidate, strengthen and restore investor confidence, promote the development of the corporate bond market in a safe, transparent, healthy and sustainable manner.

- Urgently review and evaluate the implementation of Decree 08/2023/ND-CP and relevant documents regulating private offering and trading of corporate bonds in the domestic market and offering corporate bonds to the international market; Clearly assess the necessity, propose specific plans, mechanisms, and policies that are appropriate and timely according to the provisions of law and in accordance with the direction of the Government Leaders in document No. 3580/VPCP-KTTH dated October 2, 2023, promptly reported to the Prime Minister, without delay affecting the development of the market.

- Urgently coordinate with ministries: Justice, Planning, and Investment, the State Bank of Vietnam, and related agencies to review and evaluate overall legal regulations related to corporate bond issuance, clearly determine the necessity, propose specific plans and contents of legal documents that need to be amended, supplemented, and decide according to authority, and if beyond authority, then submit it to the competent authority for decision and recommend the assignment of a presiding agency, a coordinating agency, a specific completion deadline, and a timely report to the Prime Minister in early December 2023.

- Proactively further promote, according to its authority, state management of corporate bond issuance, especially combating negativity, taking advantage of policy profiteering, and other unhealthy activities. Strengthen close coordination, information sharing, joint supervision, proactive monitoring, and appropriate, timely, and effective management solutions and measures according to assigned functions, tasks, and authority; Strengthen inspection, examination, and strict and comprehensive supervision of law compliance, avoiding profiteering, group interests, negativity, and corruption; Strictly handle cases of violations and violations of legal regulations; promptly report and propose to competent authorities any issues that arise that fall beyond their authority; and ensure the market operates according to market rules and is healthy, safe, open, transparent, and sustainable.

- Coordinate closely with relevant ministries and agencies to focus on well-implementing information and propaganda work, especially on the situation, development orientation of the State, and direction of the Government for the corporate bond market; strengthen strict censorship; detect, prevent, and handle organizations, groups, and social information channels that propagate distorted, inaccurate information and incite people; Promptly and strictly handle cases of law violation, causing loss of security, order, and social safety.

More details can be found in Official Dispatch 1177/CD-TTg, dated November 23, 2023.

Ho Quoc Tuan

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