At the Government's regular press conference

The market has seen a contraction since only about 331 trillion VND (13.5 billion USD) worth of bonds had been issued as of November 25, down more than 31.6% year-on-year, the official pointed out.

Issuers’ ahead-of-schedule bond buyback also reflects negativity in the market, with some 161 trillion VND repurchased as of November 25, exceeding last year’s amount by 14%.

Violations by some issuers and commercial banks have eroded the confidence in the market, and inaccurate rumours also adversely impacted the market, he said, noting that issuers are facing problems in liquidity, capital and credit.

To stabilise and develop the bond market, the Government has issued a decree on enhancing publicity and transparency of the market, handling problems and protecting rights and interests of investors, Chi said.

The Government has also ordered a review and necessary supplements to deal with changes in the market.

Minister Ho Duc Phoc on November 23 had a working session with 37 bond-issueing firms and nearly 10 securities companies, during which participants sought solutions to restore the faith, remove liquidity difficulties, and consolidate the legal framework, according to Chi.

The official affirmed that the businesses that violate laws will be handled strictly to ensure legal rights and interests of investors under any circumstances.

Deputy Minister of Construction Nguyen Van Sinh briefed participants on the performance of a working group established under the Prime Minister’s decision to deal with obstacles facing enterprises in the real estate market so as to ensure its stable and healthy development.

The group gathers representatives from the Ministries of Construction, Finance, Natural Resources and Environment, and Public Security, and the State Bank of Vietnam.

Through working sessions with localities and businesses, the group has identified a number of issues regarding institutions, especially legal regulations on land allocation, land use purpose conversion, land auction, and land project bidding, among others.

It has urged localities, including Hanoi and Ho Chi Minh City, to deal with the problems within their capacity.

In this regard, Minister-Chairman of the Government Office Tran Van Son noted that the biggest problems lies in procedures in land and credit, saying reviewing market segments with a focus on commercial and social housing should be done first./.