The “reaction” of the President of the National Assembly when the commander of the Finance sector said not to tighten corporate bonds, “compared” with the world

According to the meeting agenda, National Assembly Chairman Vuong Dinh Hue presided over the questioning of the second group of issues in the financial sector. One of the issues questioned by many delegates was related to the operation of capital, securities and corporate bond markets over the past time. Responsible for answering questions directly under the responsibility of Minister of Finance Ho Duc Phuc.

For example, delegate Nguyen Huu Thong (Binh Thuan delegation) questioned about violations in the stock market in recent times.

Delegate Thong stated that, in the past time, there have been many violations of corporate bonds and securities, which must be attributed to the weakness of the authorities. Delegates suggested that there should be a solution to make the market healthy instead of tightening it in an unmanageable direction, then banning it, affecting the development of the market.

There is no policy to tighten corporate bonds

Answering delegate Thong, Finance Minister Ho Duc Phuc said: Currently, there is no policy on the issue of tightening corporate bonds. This is an effective channel to mobilize capital of enterprises, contributing to production and business.

However, the Minister emphasized that the mobilization must be lawful, transparent, and must not be used to misuse the money.

According to the commander of the financial sector, currently, the scale of corporate bonds in Vietnam only accounts for 15% of GDP, compared with the strategic target set out in 2025 to achieve 20% of GDP, and reach 25% of GDP by 2030. Moreover, compared to many countries in the world, the scale of corporate bonds in Vietnam is also at the lowest level, there is still room.

“Reaction” of National Assembly Chairman Vuong Dinh Hue after the answer of the Minister of Finance

Right after Minister Ho Duc Phuc’s reply, National Assembly Chairman Vuong Dinh Hue also spoke up.

The Chairman of the National Assembly said that it is lame by the Minister of Finance to compare Vietnam’s corporate bond market with other countries, because the developed countries in this market have been around for a long time, while Vietnam’s corporate bond market is still in its infancy.

It is important, according to National Assembly Chairman Vuong Dinh Hue, that the size of this market will grow rapidly in 2021. Specifically, in 2020 the size of this market is just over 4% of GDP, in 2021 it has increased to 15% of GDP. ; while the target by 2025 is only 25%.

“Particularly in 2021, there is a very sudden increase and mistakes can happen as the delegates know. It is necessary to review whether there are any shortcomings in the legal policy, how to improve in the coming time, how to inspect stars,” noted the Chairman.

Also according to National Assembly Chairman Vuong Dinh Hue, the due debts of some bondholders this year could be very large and Mr. Hue suggested that the Finance Minister and the State Bank Governor report further to the National Assembly.

Regarding the fact that the Minister of Finance said that “there is no policy to tighten corporate bonds”, the head of the National Assembly said: Although every agency said there was no move to tighten corporate bonds, in April and May almost all of them no release.

“According to the representative’s reflection, the Tan Hoang Minh case was handled like this, but now there is a situation where the company is inviting private investors to issue corporate bonds,” Chairman Vuong Dinh Hue informed. more.