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Developing capital market, healthy real estate market

Capital market and the real estate market are two closely related markets, complement each other for development, the risks of this market may affect the sustainable development of the other market.

However, in recent times, the development of these two markets still has many limitations. The capital market has not developed deeply, the real estate market still has many problems in terms of legal, valuation, tax, land use fee… What are the solutions for healthy, stable and sustainable development of the two markets? This is the content raised in the discussion session at the Vietnam Economic Forum just held in Ho Chi Minh City.

By the end of the first quarter of 2022, the capital market size will reach 134% of GDP in 2021. Of which, the stock market capitalization will be equivalent to 93.8% of GDP; the size of the bond market reached 40.7% of GDP. The construction and real estate sectors account for about 11% of GDP.

Developing a healthy capital market and real estate market - Photo 1.

By the end of the first quarter of 2022, the capital market will reach 134% of GDP in 2021. (Illustration image – Photo: Investment Newspaper)

Through bank credit and capital market, real estate businesses have mobilized a large amount of capital, however, raising capital through corporate bond issuance has potential risks such as high interest rates and lack of information. trust, less transparency…

A representative of the State Securities Commission said that it is necessary to have solutions to develop a healthy capital market and real estate market, from perfecting the legal system to operating, managing and supervising the market.

“The Ministry of Finance has directed the establishment of an exchange for privately issued bonds, which helps to make it transparent and public. The recent cases have happened to a number of bond issuers. Individual votes have been strictly handled. Those are wake-up lessons for businesses, but also emphasize that businesses that do well, we still have to encourage to promote this market.” Pham Hong Son, Vice Chairman of the State Securities Commission, said.

According to a representative of the credit rating agency Fiin Group, a sustainable solution to develop capital for the real estate market is to “transparent” information, specifically a national open legal database is needed. project management; For bonds, it is necessary to enhance information transparency from the issuer to the product, standardize the prospectus as for the stock market, maintain public information throughout the life of the bond, ensure that investors have enough information.

“Basically, in the long-term, information transparency is a decisive factor. The key is that businesses accept transparency in their credit records in the market and comply with regulations on information disclosure. , changing the purpose of using capital when announced, there are still investors pursuing and willing to accept investment”, said Mr. Nguyen Quang Thuan, General Director and Chairman of FiinGroup.

In addition, solutions to quickly upgrade Vietnam’s stock market are also recommended by many experts. Because the liquidity of the market must increase sharply by 3-4 times to attract large investors.

“If we can grow that, we will at least receive about 10 billion USD of new capital from abroad that will enter Vietnam. That I have different requirements, for example, liquidity, transparency, opening room for homes. foreign investment… then these three things are very important”, said Mr. Don Lam, General Director of VinaCapital Group.

Speaking at the forum, the Prime Minister affirmed that the quick handling of violations related to the capital market over the past time aimed at the goal of healthy, publicity and transparency of the market.

“The process of it growing so hot we find out, then deal with it calmly and confidently with tools. We are bringing it back to a normal, stable, safe way, In the process of adjustment, there are always difficulties, fluctuations are normal, “said Prime Minister Pham Minh Chinh.

In the context that Vietnam’s economy is being affected by the unstable global economy due to inflation, the Ukraine crisis and the US interest rate hike, many experts also recommend policies for fiscal management and capital market. It is necessary to aim at stabilizing, quickly, proactively supporting and increasing the resilience of the economy.

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