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This is one of the particular objectives put out by the government in Resolution No.54/2022 promulgating an action plan to execute the National Assembly's Resolution on the Economic Restructuring Plan for the period of 2021-2025, which is part of the government's overall economic restructuring strategy.
Notably, one of the particular objectives set for this period is to grow the size of the non-credit capital sector. In such case, the stock market's capitalisation should be increased to at least 85 per cent of GDP, the outstanding debt of the overall bond market should be increased to at least 47 per cent of GDP, and the outstanding debt of the corporate bond market should be increased to about 20 per cent of GDP.
However, according to the Vietnam Bond Market Association, this sector is still modest compared to several other regional nations, such as Malaysia (56 per cent of GDP), Singapore (38 per cent of GDP), and Thailand (25 per cent of GDP).
Deputy Prime Minister Le Minh Khai last week signed and promulgated Public Notice No.304 on the rectification of corporate bond market activities and land auctions, after acknowledgement that numerous hazards and illegal manipulations have been impeding investors’ faith.
The decision came hot on the heels of the State Securities Commission’s decision to cancel nine bond issuances by real estate developer Tan Hoang Minh Group between July 2021 and last month, totalling $436.1 million, owing to concealment and dissemination of misleading information.