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risks if cash flow is not well managed, having to pay principal when the project has not
yet generated profits, resulting in low capital efficiency. Potential risks may be in the

form of lending capital, or even a way to avoid credit limits. Fourth, the possibility of
successful maturity is low due to short-term bonds; businesses may not be able to
respond in time to overcome the consequences, and the risk of facing bankruptcy is very
high. It is difficult to ensure payment sources for maturing bonds. Fifth, the Government,
the Ministry of Finance, and relevant ministries and branches do not have specific
policies to encourage the issuance of green bonds, so the issuance results in this field
tend to slow down. If in 2022, businesses issued 37,000 billion VND of green bonds,
then in 2023, only 3,000 billion VND of this type of bond was issued, and there were

no results in the first 5 months of 2024. [MOF (2024)]
3.3. Causes of limitations
3.3.1 Causes from management agencies
The draft legal framework amends the circular many times, making it difficult for
management organizations, issuing enterprises, and investors to adapt and get used to.
A new regulation in Decree 153/2020/ND-CP is that the subjects buying corporate

bonds are only for professional investors. Specifically, privately issued bonds are only
issued to professional investors and do not need to be licensed. Professional securities
investors, when buying private corporate bonds, must self-assess and take
responsibility for the risks. Issuing enterprises and organizations providing corporate
bond services when committing violations will be subject to administrative sanctions
according to regulations (MOF (2024).
The management and supervision system is not really effective

The corporate bond market still has some potential risks, and needs to be closely
monitored for the market to develop healthily. Specifically, for the collateral of bonds.
The collateral of bonds is mainly real estate, securities, programs and projects. Although
the rate of bonds with collateral is high, in reality, the quality of collateral is mainly
projects, future assets or corporate stocks.
Infrastructure has not yet met the transaction needs of investors in a timely manner

To increase the liquidity of privately issued corporate bonds as well as help the
market have information on bond transactions after issuance, Decree 153/2020/ND-CP
has regulations on the organization of a secondary trading market for privately issued
corporate bonds. Before the corporate bond trading system was put into operation, the
number of privately issued corporate bonds traded centrally or listed was often very
limited, meaning that bond transactions mainly took place on the OTC market or through
securities companies and depository organizations by transferring ownership.
Absence of credit rating agencies

Lack of organizations to evaluate and rate corporate credit. Current investors rely
entirely on the information disclosure table published by the issuing organization when
investing, without an independent data source to check the transparency of the market.
Recognizing that the credit rating puzzle is still lacking for investors to have more

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