VnEconomy conference puts spotlight on corporate bond market

Vietnam’s corporate bond market has been posting impressive levels of development in recent times. According to the latest data from the State Securities Commission, there were 376 domestic corporate bond issuances in the first seven months of 2021 with a total value of VND235.094 trillion ($10.29 billion), an increase of nearly 31 per cent year-on-year.

After ten years of establishment and development, Vietnam’s corporate bond market is increasingly asserting its role in balancing capital channels in the financial market. Over the last two years, the breakthrough development of the market in terms of scale has garnered great attention within society. For the first time in history, in 2019 and 2020 the total value of successfully issued corporate bonds exceeded the total value of government bonds issued. In 2020 alone, the value of corporate bond issuances reached a record VND429.5 trillion ($18.80 billion), a 28.3 per cent increase compared to 2019.

The legal framework for corporate bond issuances has closely followed the movements and growth of the market, and there have been fundamental changes in the sustainable development of the market. There remain shortcomings and potential risks for market participants, however, with many individual investors buying corporate bonds based mainly on “trends”.

Therefore, to identify the current picture of Vietnam’s corporate bond market and to analyze and assess the impact on participants as well as the stability and sustainability of the market, VnEconomy is hosting an online conference entitled “Development of the corporate bond market: Balancing the advantages of issuers and investors” from 9am on Monday, August 16 on VnEconomy and VnEconomy’s Facebook fan page.

The conference will be divided into two parts, including: “Identifying and evaluating the picture of the corporate bond market in Vietnam and international experiences in developing the corporate bond market”, and “Transparency and the balance of advantages between issuers and investors”, with the participation of financial experts and representatives from banks, the Vietnam Bond Market Association, bond rating agencies, and bond issuers. The conference is being chaired by Dr. Can Van Luc,  Member of the National Financial and Monetary Policy Advisory Council and Economist at the Bank for Investment and Development of Vietnam (BIDV), and VnEconomy journalist Mr. Nguyen Hoai.