Vice Minister of Finance: There will be many highlights in the bond market in 2023

According to the Deputy Minister of Finance, 887 bond codes from 249 bond registration agencies have been registered and traded in the centralized market. Deputy Minister of Finance, Banking and Finance: There are many highlights in the bond market in 2023 Minh Nguyet • {Published Date}Deputy Minister of Finance said that 249 bond registration agencies have registered more than 887 bond codes. Transactions are conducted on centralized markets.

At the December 2023 government regular press conference held on the afternoon of January 5, Vice Minister of Finance Nguyen Dezhi commented that the bond market in 2023 has many bright spots.

First of all, Order No. 08 issued by the government has a greater impact on the food market. It regulates the suspension of some provisions of Order No. 65 and allows companies to negotiate with investors to deal with maturing bonds, ensuring the principle of “harmonious interests and harmonious development.” Shared risks”.

>>The Deputy Prime Minister requested the Ministry of Finance to report on amending Decree No. 08 on corporate bonds

The second highlight is in terms of market organization. In July 2023, the Ministry of Finance officially launched the individual corporate bond trading market. As of December 31, the total transaction volume of the organized bond market was VND218 trillion, and the corresponding average transaction volume was VND1.88 trillion/trading day.

Currently, 887 bond codes from 249 bond registration agencies have been registered and traded in this centralized market. By centralizing the organized market, it helps to increase transparency and increase the liquidity of corporate bonds.

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Third, leaders of the Ministry of Finance stated that market inspections and reviews have been strengthened, and issuing companies and consulting companies have also been inspected. In the process of implementing the bond market work, the Ministry of Finance also strengthened communication work. Since then, society, investors, issuers themselves, and institutions providing consulting services have had a deeper understanding of the laws and regulations related to the bond market.

It is worth noting that by the end of 2023, 81 companies will issue, with the issuance amount reaching 269.5 trillion VND. When companies restructure and extend bonds, they will also allocate resources to repay maturing bonds and negotiate with investors to reduce the pressure on bond principal and interest payments. Correspondingly, the amount of corporate bond repurchases before maturity in 2023 is also 238 trillion VND, and expired bonds are also close to 40%.

>> On the first day of launch, the exchange’s bond trading volume exceeded 5 million

“In terms of investor structure, such figures are also worthy of our seeing changes in the market: 92.4% of investors and institutions participating in the primary market purchase of bonds will account for 92.4% in 2023, while individual investors will only account for about 7.6% of primary bonds. Changes in the market. That is, the way to access the market has changed dramatically, both for issuers and investors,” he said.

Regarding expectations for 2024, he commented: “For this corporate bond market, we see confidence returning, and we expect that with concrete solutions, as the economy recovers, the corporate bond market in 2024 will continue to maintain and have Sustainable and substantial growth.” “For issuers and companies, issuers, investors and service providers, the market quality will further improve. This is what is expected for the bond market in 2024.”

>> New regulations on government bond issuance will come into effect on January 15