Extending fama french factors to corporate bond markets

Vinhomes Ocean Park 2 in Hung Yen Province. Hung Yen Urban Investment and Development Co issued two lots of bonds worth total VND7.2 trillion on March 16 with collateral of property rights arising from business cooperation contracts at Vinhomes Ocean Park 3 project. — Photo courtesy of Vinhomes The corporate bond market is showing signs of recovery after a prolonged period of inactivity with a notable increase in both the number of issuers and value of issuance. Data on the Ha Noi Stock Exchange showed as of March 24, eight companies issued bonds worth more than VND23.8 trillion (over US$1 billion), of which real estate firms dominated the market with total issued value of VND19 trillion, accounting for 80 per cent of total value. This number was a significant increase compared to the value of VND500 billion in February and VND110 billion in January. On March 16, two realty firms – Hung Yen Urban Investment and Development Co Ltd and Southern Star Urban Development and … [Read more...] about Corporate bond issuance surges in March after prolonged inactivity

Vinhomes Ocean Park 2 in Hung Yen province. Hung Yen Urban Investment and Development Co issued two lots of bonds worth total 7.2 trillion VND on March 16 with collateral of property rights arising from business cooperation contracts at Vinhomes Ocean Park 3 project. (Photo courtesy of Vinhomes) Hanoi (VNS/VNA) - The corporate bond market is showing signs of recovery after a prolonged period of inactivity with a notable increase in both the number of issuers and value of issuance. Data on the Hanoi Stock Exchange showed as of March 24, eight companies issued bonds worth more than 23.8 trillion VND (over 1 billion USD), of which real estate firms dominated the market with total issued value of 19 trillion VND, accounting for 80% of total value. This number was a significant increase compared to the value of 500 billion VND in February and 110 billion VND in January. On March 16, two realty firms – Hung Yen Urban Investment and Development Co Ltd and Southern Star Urban … [Read more...] about Corporate bond issuance surges in March after prolonged inactivity

Samples of corporate bonds issued by companies. — Photo vneconomy.vn Commercial banks that underwrite and sell corporate bonds have to buy them back if investors so demand, the central bank has said. It followed a meeting with voters (members of the public) the State Bank of Viet Nam (SBV) held in HCM City amid the ongoing bond market troubles. Besides asking for underwriting banks to take responsibility for redeeming bonds, the voters also urged the SBV to tighten inspection of credit institutions to ensure they comply with regulations while investing in bonds. The SBV recently raided 11 banks and fined a number of them for violating regulations related to bond purchases. Under current regulations, banks must have an internal credit rating system and can only buy bonds if their bad debts ratio is below 3 per cent. For bonds sold in the domestic market, when issuers cannot pay in full and on time the bond principal and interest, they must negotiate with bondholders … [Read more...] about Banks underwriting bonds should buy back bonds: central bank

Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Commercial banks that underwrite and sell corporate bonds have to buy them back if investors so demand, the central bank has said. It followed a meeting with voters (members of the public) the State Bank of Vietnam (SBV) held in Ho Chi Minh City amid the ongoing bond market troubles. Besides asking for underwriting banks to take responsibility for redeeming bonds, the voters also urged the SBV to tighten inspection of credit institutions to ensure they comply with regulations while investing in bonds. The SBV recently raided 11 banks and fined a number of them for violating regulations related to bond purchases. Under current regulations, banks must have an internal credit rating system and can only buy bonds if their bad debts ratio is below 3%. For bonds sold in the domestic market, when issuers cannot pay in full and on time the bond principal and interest, they must negotiate with bondholders for extending the term … [Read more...] about Banks underwriting bonds should buy back bonds: Central bank

A property project umder construction in downtown Ha Noi. — VNA/VNS Danh Lam There have been positive signs for the property market's recovery, said industry experts and economists. In an earlier development, for the first time in the last two years, the central bank decided to cut interest rates by 1 per cent, bringing the discount rate from 4.5 per cent to 3.5 per cent, overnight rate for inter-bank from 7 per cent to 6 per cent annually. According to the central bank, average inter-bank overnight rates have fallen by as much as 0.8 per cent, to 2.7 per cent on March 20, marking the first dip under 3 per cent since the end of August last year. Economist Can Van Luc, a member of the national finance and monetary council, said a dip in interest rates would likely result in much-needed improvements in the property market. Luc said it might translate into lower prices as investors gained access to lower-interest loans while giving them a financial boost to finish ongoing … [Read more...] about Property market stay hopeful as interest rates dip

In an earlier development, for the first time in the last two years, the central bank decided to cut policy interest rates by 1 percentage point, bringing the discount rate from 4.5% to 3.5%, overnight rate for inter-bank from 7% to 6% annually. According to the central bank, average inter-bank overnight rates have fallen by as much as 0.8%, to 2.7% on March 20, marking the first dip under 3% since the end of August last year. Economist Can Van Luc, a member of the national finance and monetary council, said a dip in interest rates would likely result in much-needed improvements in the property market. Luc said it might translate into lower prices as investors gained access to lower-interest loans while giving them a financial boost to finish ongoing projects or start new projects. In addition, a lower rate might give buyers more confidence to make purchases and improve market attitude in general as many potential buyers were sitting on the fence waiting for prices to drop … [Read more...] about Property market stays hopeful as interest rates dip

Many bond issuers begged regulatory authorities to assist them. In response, the government issued Decree No.08/2023/ND-CP on private corporate bonds on March 5 to alleviate the pressure on bond issuers this year. Bui Thi Thu Nga Banking and finance, Account manager BowerGroupAsia Vietnam Decree 08 postpones a number of new standards until January 2024, giving the market time to adjust and opening space for bondholders and bond issuers to negotiate. It amends Decree No.153/2020/ND-CP from December 2020, and Decree No.65/2022/ND-CP from September last year. After assessing the former and the case of Tan Hoang Minh, the government endorsed the latter to impose stricter management mechanisms on the trading of private bonds. Decree 65 set higher qualifications for individual investors, compulsory credit ratings in some circumstances, a shorter period for distributing bonds, and prohibitions extending the term of bonds issued before September 15, 2022. Most of the … [Read more...] about Clearing up the liquidity issue through amendments

Stakeholders have much to say about the current state of the tourism industry, and what must be done Prime Minister Pham Minh Chinh chaired a tourism recovery conference on March 15 and talked to management agencies and tourism businesses about removing obstacles for the industry to thrive once again. Despite being one of the first Southeast Asian countries to fully reopen to international tourism after the pandemic, Vietnam’s tourism industry still trails other countries in the region. The PM raised a series of questions about tourism promotion, competitive advantages, products, and visa policies – all factors that are considered to be subjective causes for Vietnam’s tourism to fail its foreign tourism targets thus far. “Tourism cannot develop alone, and tourism cannot develop if culture and the entertainment industry do not develop,” PM Chinh said. He directed the tourism industry to build green and sustainable tourism products, finance tourism activities, and develop … [Read more...] about Tourism breakthrough within reach

Visas, service quality, and technology were all part of discussions on a better-performing tourism sector Photo: Cuong Minh May’s National Assembly session is likely to help push ahead a revamp of the country’s rules on entry and exit for foreign visitors, after the Ministry of Public Security crafts amendments to the current law. The development will be an important basis for the issuance of new regulations related to the visa policy, removing difficulties for the tourism industry, and creating conditions to attract more international visitors this year, according to most observers. Dang Tuan Viet, deputy director of the Ministry of Public Secrutity’s (MoPS) Vietnam Immigration Department, said that the proposal emphasised two major areas related to unilateral visa exemption and electronic visa policy. The MoPS also proposes to expand the number of countries that can issue e-visas from 80 countries to the maximum. The MoPS will also ask to increase the temporary stay … [Read more...] about Visa upgrade at heart of fresh approach to tourism

Some branches are taking care of the registration fee for car buyers, but sales are still not being boosted, photo Le Toan In a document sent to the prime minister last week, the Vietnam Automobile Manufacturers Association (VAMA) along with other associations asked the government to extend the payment of special consumption tax and reduce the registration fee of domestically manufactured and assembled cars by a half this year, in order to stimulate demand. A VAMA representative said that the domestic car sales market is in a gloomy situation, and has been struggling like many other industries since 2020. “In order to stimulate market demand, we need strong enough policies like extending the payment of excise tax in 2023 and taking 50 per cent off the registration fee. These should be applied as soon as possible,” emphasised the representative. To combat the effects of the pandemic, the government chopped the registration fee in half for domestically manufactured and assembled … [Read more...] about Auto makers project bumpy years ahead