Vietnam determined to fix bond, property market problems: PM

The government is seeking to correct problems in the corporate bond and real estate markets to protect the legitimate rights of residents and enterprises, Prime Minister Pham Minh Chinh said Thursday.

While chairing a regular government meeting in Hanoi, the PM said Vietnam, despite many difficulties, has managed to keep the overall situation under control with a stable macro-economy and ensured major balances, including a 11-month trade surplus of about $10.6 billion.

He noted regulators have been making efforts to fix problems in the capital, bond, and property markets, though the determination has influenced investor sentiment and the general public.

The PM noted the government has set up three working groups to carry out the endeavors, with each led by Deputy PM Le Minh Khai, Minister of Construction Nguyen Thanh Nghi, and Minister of Finance Ho Duc Phoc.

In reality, regulators are handling infringements by corporate bond issuers, therefore enterprises have been finding loan access difficult. For the entire October, there was only one private placement of corporate bonds.

The Minister of Finance, at a meeting with 39 securities companies and bond issuers on November 23, said that businesses facing difficulties in liquidity had to sell their assets to refund bond buyers to preserve investor confidence.

PM Chinh, during Thursday’s government meeting, stressed that the world situation continued to change in a rapid and complicated way with increasing risks.

As for issues in Vietnam, he mentioned shortages of gasoline products, drugs and medical supplies. Deputy PM Vu Duc Dam was assigned by the PM to solve drug and medical supply shortages, while Industry and Trade Minister Nguyen Hong Dien is responsible to solve the gasoline crunch.

According to the General Statistics Office, the consumer price index (CPI) in November increased by 0.39% compared to October. In comparison to December last year, November’s CPI increased by 4.56%. Meanwhile, the index in the January-November period rose 3.02% year-on-year.