The HCMC Real Estate Association (HoREA) has called for an extension of Decree 08/2023 which has delayed to the implementation of tighten bond market regulations outlined in Decree 65/2020, The Saigon Times is reporting.
Decree 65 when fully implemented would see bonds given credit ratings and bond market interactions limited to professional investors. These regulations came about after a number of firms, particularly in real estate, used corporate bonds to raise funds for specific projects but then spent the money on other things. But when Decree 65 came into force the bond market froze up which is why Decree 08 came about.
Eds note: Decree 08 is only delaying the inevitable. The bond market needs these reforms and the sooner the better. It’s time top rip the band aid off.