Today, the Minister of Finance, the Governor of the State Bank answered questions

Finance Minister Ho Duc Phuc is the second branch head to post and answer questions at the National Assembly on the morning of June 8. Governor of the State Bank Nguyen Thi Hong will answer questions in the afternoon of the same day.

This is the first time these two industry leaders have answered questions before the National Assembly since taking office in July 2021.

In the morning, Mr. Phuc will spend time answering questions from members of the National Assembly with 4 groups of important issues related to the state management of the financial sector.

One of the “hot” issues that has received much attention from public opinion recently is the operation of capital markets, securities and corporate bonds.

In his previous report to the National Assembly, Minister Phuc commented that the corporate bond market grew rapidly, potential risk, especially manipulation, price manipulation, misrepresentation, lack of verification, and inaccurate information affecting the market. A typical example of this mistake is the incident that happened at Tan Hoang Minh.

In fact, bond issuance has boomed in two years, especially in the form of private bond issuance. In 2021, the total volume of corporate bonds issued will reach nearly VND 640,000 billion, an increase of nearly 40% compared to 2020, with nearly 95% being issued privately.

Credit institutions issue the most, with more than 36% of total market volume. Real estate business ranked second, nearly 33.2%.

Similarly, the situation of manipulation, price manipulation, false rumors… has greatly affected stock market is in the early stages of development. The case of FLC and Louis Holdings is typical.

At the questioning session, Mr. Phuc will also spend time clarifying the bottlenecks of equitization and divestment of State capital; fiscal policies to support the socio-economic recovery program; price management, public procurement and inflation control according to the resolution of the National Assembly.

Measures to prevent tax loss in business activities and real estate transfer; Tax administration for business activities on digital platforms is also the content the Finance Minister must answer.

Deputy Prime Ministers Le Minh Khai, Le Van Thanh and Ministers of Planning and Investment, Industry and Trade, Agriculture and Rural Development, Transport, Construction, Natural Resources and Environment, Labor, Invalids and Social Affairs, Information & Communication, Public Security; State bank governor; The Government Inspector General and the State Auditor General will participate in explaining related issues.

In the afternoon, Governor of the State Bank Nguyen Thi Hong will clarify the management and control of credit in potentially risky areas, especially real estate lending; handling bad debts according to the resolution of the National Assembly, weak banks.

Governor Nguyen Thi Hong assessed that the real estate market fluctuates strongly, the situation of inflated prices causes a virtual fever in real estate, land auctions at unusually high prices… guarantees from credit institutions.

Therefore, the State Bank identifies, real estate investment and business is one of the risky areas for banking activities, requiring control solutions.

Currently, about 94% of real estate credit balance is for medium and long-term loans (10-25 years), while the bank’s mobilization source is mainly short-term. The difference in terms and interest rates between capital and lending in this field is very risky for banks.

In the first posting to reply to the National Assembly, the Governor also spent time clarifying the implementation of the National Assembly’s resolution on monetary policy to support economic recovery; annual credit limit mechanism for commercial banks; black credit, high-tech crime…

Joining the answer with Ms. Hong were Deputy Prime Minister Le Minh Khai; Ministers of Planning and Investment, Finance, Construction, Public Security; Government Inspector General; Total state audit; Chief Justice of the Supreme People’s Court; Chief Procurator of the Supreme People’s Procuracy.