Vietnam needs to 'protect' citizens with market 'rectifications:' PM

By Hoai Thu   December 1, 2022 | 03:40 am PT
Vietnam needs to 'protect' citizens with market 'rectifications:' PM
Prime Minister Pham Minh Chinh speaks at a government meeting on December 1, 2022. Photo by the Vietnam Government Portal
Negativity in the corporate bond, capital and property markets should be ‘rectified’ by punishing rule breakers to instill investor confidence, says Vietnam Prime Minister Pham Minh Chinh.

This year Vietnam has exposed and corrected violations in these markets to "protect the rights of citizens and businesses," he said at a government meeting Thursday morning.

Arrests of real estate and property company leaders allegedly involved in bond fraud have disrupted the bond market in recent months, with many companies buying back their issued bonds in fear of legal entanglement.

Businesses have been complaining that they lack access to the credit needed for expansions because bond issuance is no longer a viable fundraising option.

Depositors have been withdrawing their money from banks to protect their assets, which makes it difficult for companies to acquire loans.

But PM Chinh said that the current crackdown would change these "short-term" problems. He added that three state task forces were now tackling capital issues in the property and bond markets.

Minister of Finance Ho Duc Phoc, charged with solving the bond market problem, said earlier that bond issuers must sell their assets to pay back bond investors and preserve faith in the market.

The PM also said that despite these issues, the Vietnamese economy has remained stable this year, with inflation under control at 3.02% over the first 11-months compared to the same period last year.

Shortages of electricity and gasoline have been resolved and supply is guaranteed, he added.

Global impacts, however, remain negative, with rising inflation, tightened monetary policy, gaining U.S. dollar and possible recessions threating the world over the next year and beyond, he said.

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