About 2 billion USD worth of bonds was issued by real estate firms in the first six months of 2020 (Photo: VNA)Hanoi (VNA) - Enterprises in thereal estate sector issued some 45.59 trillion VND (around 2 billion USD) worthof bonds in the first half of this year, equal to 80 percent of the figure in 2019as a whole.
The growth was attributed to the safety ofbonds compared to other investment vehicles currently facing fluctuations, saidNguyen Duc Quan, director of the Asia - Pacific Securities Joint Stock Company.
Lower deposit interest rates at banks alsocontribute to fuelling the flow of capital into the bond market, he added.
Financial and banking expert Nguyen Tri Hieu,meanwhile, warned that a lack of sound control may lead to a bursting of the bondbubble after a short period of heated growth, like a decade ago.
The COVID-19 pandemic is expected to plague thereal estate market in another way, with companies likely to face difficultiesfrom plunging transaction numbers and the distinct possibility of bankruptcy.
Ineffectively run businesses may be unable topay bond holders when the due date arrives. The fact that real estate companieshave quickly issued bonds has made some experts concerned about a host ofassociated risks./.
VNA
