The scale of the private corporate bond trading market has grown strongly.

The trading system has operated safely and smoothly

According to Ms. Vu Thi Thuy Nga, Deputy General Director of HNX, at the time of opening, the market had 19 privately placed corporate bonds of 3 registered placement organizations with a total registered trading value of VND9,060 billion. After one- year operation, HNX has received applications and put 1,146 bond codes of 301 enterprises with a registered trading value of about VND832,189.4 billion into trading on the system. Currently, the privately placed corporate bond trading member system has also increased rapidly from 8 members to 48 members.

“The State Securities Commission will strengthen management and supervision of securities trading organizations providing services in the market; strictly punish violations of securities trading organizations as well as placement organizations under the results of HNX's supervision. At the same time, the State Securities Commission will actively coordinate and accompany relevant agencies, units and organizations in implementing solutions and proposals for market development, towards a sustainable and safe market development”, Ms. Vu Thi Chan Phuong said.

Notably, the liquidity of privately placed corporate bonds has improved significantly, with the average trading value in the first month of operation reached VND250.6 billion/ trading session. After one year, the average trading value of privately placed corporate bonds has reached VND3,704.5 billion/ trading session, mainly focusing on investors as credit institutions with 38.3% and securities companies with about 32%. The development of the secondary market for privately placed corporate bonds also creates favorable conditions for businesses to raise capital in the primary market, contributing to promoting the development of the primary market for privately placed corporate bonds in a healthier and more sustainable manner. In the domestic market, from July 19, 2023 to July 19, 2024, there were 167 successful placements worth VND393,892.6 billion.

Regarding the number of investors on the secondary privately placed corporate bond exchange, Mr. Duong Ngoc Tuan, Deputy General Director of the Vietnam Securities Depository and Clearing Cooperation (VSDC), said that as of the end of September, the number of investor accounts was 190,826, including 190,034 individual investor accounts. The payment value is over VND3 trillion/day, including the largest payment value of over VND10.4 trillion on June 11, 2024. In the first year of operation, VSDC registered more than 1.47 billion bonds worth VND900 trillion for the first time.

According to Mr. Duong Ngoc Tuan, although the number of first-time registrations and exercise of private bond rights was large at the beginning of implementation, VSDC has processed these records in accordance with regulations. “The sharp increase in the number of members and investor accounts participating in VSDC’s private bond system has contributed to increasing the quantity, value of transactions and payment value,” Mr. Duong Ngoc Tuan said.

Improving the quality of goods in the market

According to the Chairwoman of the State Securities Commission (SSC) Vu Thi Chan Phuong, the management agency and units as well as market members and placement organizations need to review to propose solutions to overcome existing problems, bringing the corporate bond and private corporate bonds markets to develop in more efficiency, transparency and sustainability, clearly showing the role of a medium and long-term capital mobilization channel for businesses and the economy.

To achieve the goal, a series of important tasks and solutions have been planned by the SSC in the near future. The SSC improves the quality of goods on the market by improving the quality of placement organizations as the top priority task.

Accordingly, the SSC in general and market members in particular provide basic solutions to control the quality of private corporate bonds by promoting the application of credit ratings for private corporate bond issuers; consider raising the conditions for placing private corporate bonds to minimize the situation that many newly established enterprises have not yet operated or have been established but have not operated can issue private corporate bonds with a scale many times larger than their equity.

Along with improving the quality of issuers, the quality of investors also needs to continue to be improved in the direction of attracting professional investors in the financial sector, financial investors, and foreign institutional investors.

At the same time, closely coordinate between policy-making agencies, supervisory organizations, and market members in proposing solutions and initiatives to promote sustainable and healthy market development, resolve difficulties and obstacles in the market's operations; consider promoting standardization, development, and application of a set of standard conditions and terms for corporate bonds, referencing international experience and practices to address the current situation of bonds with many different conditions and terms.

Additionally, encourages the development of an ecosystem for the market through the development and improvement of the quality of service providers and market intermediaries such as consulting organizations, guarantee organizations, credit enhancement organizations, etc.