Deputy Prime Minister Vuong Dinh Hue has called on the State Bank of Vietnam (SBV) and relevant agencies to quickly draft business conditions for the debt trading market so that they can go before the Prime Minister by July 1.
Hue was speaking at a meeting held by the central bank in Hanoi on Wednesday to collect comments on a draft decree on business conditions for debt trading.
According to the amended Investment Law, debt trading is a conditional business sector but conditions for it are not yet available.
Vietnam has two State-owned enterprises active in the sector, namely Vietnam Debt and Asset Trading Company (DATC) under the Ministry of Finance and Vietnam Asset Management Company (VAMC) under the SBV. There are also tens of debt and asset trading firms belonging to banks.
However, the country’s debt trading market has not performed well debt purchases are usually under guidance of the State. Business conditions for the debt trading services have not been in place though this sector is among 15 conditional business sectors.
Hue told the meeting that building the decree is not an easy task since Vietnam has little experience in debt trading. In addition, business conditions for the sector must comply with the amended Investment Law.
Hue said the decree should not constitute discrimination among local and foreign businesses, except for specific regulations such as debt purchases and sales via VAMC’s issuance of special bonds.