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Traders work at the trading floor of Sai Gon Securities Inc. (Photo: VNA) Hanoi (VNS/VNA) - The development of the equity market will help promote the transparency and corporate governance of listed companies, especially public companies with State capital , an official has said. The statement was made by Dang Quyet Tien , director of the finance ministry's Corporate Finance Department, during a recent seminar in Hanoi. “This will help boost the volume of transactions in the stock market, increasing the liquidity for State shareholders,” Tien said. “There is a problem that has persisted for many years in most State-owned enterprises, which is the ineffectiveness in the management and use of State capital,” he said. “The development of the equity market would help State-owned enterprises be less dependent on bank credit loans, diversifying forms of capital mobilisation.” The Vietnamese stock market has seen remarkable development since its inception, but the rate of capital mobilisation via this market was still very low, said Nguyen Tu Anh, director of the General Economic Department under the Central Economic Committee. “The diversification of products on the market is still poor, resulting in high volatility. At present, idle capital in the economy is quite large, the deposit interest rates of banks have decreased and the interest rates of Government bonds have dropped deeply, which are very favourable conditions to develop the stock market,” he said. “Over the past 20 years, Vietnam’s stock market has made great progress, promoting its role as a capital mobilisation channel for the medium and long term. However, more efforts are still needed to achieve the upcoming development goals,” said Ta Thanh Binh, Director of Securities Market Development Department under the State Securities Commission. “The status upgrade of the stock market needs efforts not only from the securities industry and the stock market regulators but also from …

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With Vietnamese regulators’ efforts to minimise the risks of corporate bonds’ mass issuance, the landscape is predicted to be cooled down compared to a frenzy of debt instruments in the previous period. Corporate bond rush heads for slowdown. According to fresh data from the Hanoi Stock Exchange, as of January 22, there were seven successful corporate bond private placements with a total value of $279 million and two public offerings of $70 million. The real estate sector accounted for $233.7 million, equivalent to 66.9 per cent of the total issued value. Previously, over $17.82 billion of corporate bonds were issued last year, which increased by 38.5 per cent from end-2019 and 83.5 per cent from end-2018. Albeit a decline in the last quarter of 2020’s issuance volume the real estate sector witnessed the largest corporate bond issuance volume in 2020 of over $6.09 billion, accounting for over 35 per cent of total issuance value at an average coupon rate of 10.52 per cent. The banking sector also made up for nearly 30 per cent, with an average coupon rate of 6.69 per cent, lower than 7.06 per cent in 2019. Some significant bond issuers included BIDV, VietinBank, HDBank, and TPBank. The rush of corporate bond issuance has sought attention from yield-hunt investors in the face of ultra-low interest rates. “Rising medium- and long-term capital demands to satisfy stricter regulations on credit safety limits and capital adequacy ratio in 2021 were putting much pressure on commercial banks to raise funds from bond issuance in late 2020,” explained Nguyen Tu Anh, director of the General Economic Department under the Central Party’s Economic Commission. “On the other hand, foreign investors have been closely engaged in the domestic debt market. In 2020, foreign investors were actively net buyers, expect only three months of slight net-selling, with a total net buying value of $179.7 million.” However, the lack of transparency and independent credit …

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During an Arria-formula online meeting of the UN Security Council member states which was co-chaired by the U.K., the U.S., Estonia, France, Ireland and Norway on April 9, Ambassador Quy urged supporting the role of the Special Envoy of the UN Secretary General on Myanmar and creating favourable conditions for the envoy's working trip to Myanmar. He stressed the top priority to ensuring life, security and safety of all, and unobstructed humanitarian aid to those in need of help, especially vulnerable groups in society. He called on parties concerned in Myamar to refrain from violent acts, conduct dialogues and reconciliation acccording to will and aspirations of the people, for the sake of peace and stability in the region. Quy affirmed that Myanmar is a member state of the ASEAN family and the bloc is ready to help the country in a constructive and peaceful manner via related mechanisms. ASEAN member states, including Vietnam, has been working with parties concerned in Myanmar to promote dialogue and seek solutions to the issue, he said. He also called on the international community to support ASEAN’s efforts and stance, and wished that discussions at the UN and relevant important issues need consultations with ASEAN member countries and others in the region. Rapporteurs at the event expressed concern over the current situation in Myanmar and warned of the risks of economic, food and health crises as well as a civil war. Many opinions called for refraining from violence and preventing tension escalation, while proposing to settle differences and disputes via dialogue and reconciliation that meet Myanmar people’s aspirations. Arria-formula meeting is an informal meeting of the UN Security Council to discuss important and emerging issues with the participation of countries in and outside the UNSC as well as related organisations. Source: VNA …

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