In recent days, I have read a lot of articles about the health of enterprises by well-known economists. They talk about the layoff of workers, order cuts, exchange rate fluctuations, high interest rates and difficulties in accessing credit.

According to the Prime Minister’s report to the National Assembly last week, Vietnam’s corporate bond market value is 15.9 percent of GDP.

Minister of Finance Ho Duc Phoc said all bond issuers have committed to pay debts on schedule.

Commercial banks and large corporations with high capability and transparency will benefit once the $63 billion bond market is managed by new regulations. But analysts warn about the loss of liquidity.

As huge volumes of corporate bonds are about to fall due and credit is being tightened for the real estate industry, the possibility of bond-issuing property firms defaulting on debt is high.

The corporate bond market still has ample room for improvement, according to Nguyen Tu Anh, Director of the General Economic Affairs Department, Communist Party Economic Commission.

Although real estate experts are worrying about a debt of VND 360 trillion ($15.6 billion) in bonds that will be due date in the 2022-2024 period, some businesses have returned to issuing bonds for potential investments in their next periods.

Building a solid and long-term legal basis for corporate bond issuance is an urgent solution to build a capital market for the real estate sector.

MoF said that investors need to be aware of and accept the risks when buying bonds in case the enterprise cannot guarantee its obligation to pay the bond principal and interest.

From now to the end of 2022, the number of corporate bonds to reach maturity will increase, estimated at tens of thousands of dong each month.

The State Bank of Vietnam has been conducting inspections into seven banks that have invested in corporate bonds following the Prime Minister’s instruction ordering relevant authorities to tighten legal compliance in the stock and bond markets.

Although experts believe that rating agencies are an indispensable element of a healthy and transparent market, and a significant fundraising channel, real estate developers may suffer hurdles due to stringent bond issuance rules.

After the cancelation of nine corporate bond issuances of three companies related to Tan Hoang Minh, the volume of private offerings fell sharply by 33 percent to VND30 trillion in April.

Central authorities have sent out a strong message that the securities and corporate bond markets will be made healthy and transparent. Their move came after serious infringements were detected on these markets.

Interest rates in the market in recent days have been unfavorable for businesses.

Law enforcement agencies have prosecuted and detained Facebooker Dang Nhu Quynh and charged him with alleged posting of false information on social networks.

After a number of violations reported in corporate bond issuances and the auctions of land use rights, the Prime Minister has called for stricter monitoring over these activities.

As the corporate bond market has shown signs of fast growth, this capital mobilisation channel will be closely inspected and controlled this year.

As major buyers in the market, commercial banks are holding large amounts of corporate bonds, mostly realty bonds. The central bank has issued a warning about the risks with the bonds.