Realty association calls for push-back of effective date
Realty association calls for push-back of effective date
HCM City Real Estate Association (HoREA) is calling for a revision to an article whose entry into force is believed to stymie the corporate bond market.
Blocks of appartments located next to Saigon River in HCM City. HoREA said Decree No.08 had accelerated the recoery of realty enterprises. — VNA/VNS Photo Hồng Đạt |
Article 3 of Government Decree No.08/2023/ND-CP stipulates that three specific articles in Decree No.65, one regulating professional securities investors, one regulating time intervals between bond issues, and one regulating bond issuers credit ratings, will no longer be in effect as of December 31, 2023.
HoREA has sent an appeal to the Prime Minister and the Ministry of Finance, asking for the date to be pushed back to December 31, 2024, giving investors and bond issuers more time to adapt to Decree No.08.
"Lots of investors and bond issuers haven't met the new requirements specified in Decree No.08. That's why the three articles should stay in force for one more year," said the appeal.
If the date is not pushed back, many enterprises, HoREA said, would face difficulties issuing privately placed corporate bonds after January 1, 2024.
HoREA also urged the government to take action to promote the formation of credit rating agencies in Việt Nam, for the reason that "there are few such agencies in the country."
HoREA said Decree No.08 had been put in place for just six months but it had served the corporate bond market well by removing obstacles in the way of bond issuers and accelerating the recovery of real estate enterprises.
The decree is believed to keep the market on track in Q4/2023, during which the volume of corporate bonds coming due will reach its peak of the whole year, at VNĐ65.5 trillion ($2.7 billion). It is also worth noting that the figure will soar to VNĐ329.5 trillion ($13.5 billion) in 2024, the highest since 2022.
A professional securities investor (PSI), under Decree No.65, is defined as a person holding a portfolio of listed securities with a minimum value of VNĐ2 billion ($82,000). The PSI status, once determined, is valid for three months.
HoREA said the financial position of many PSIs was weakening as the economic downturn had weighed on the securities market.
