In its conclusion on 12/2, the Government Inspectorate identified numerous violations by 26 enterprises that issued bonds from 2019 until the end of 11/2024. These violations occurred across various sectors, with the highest concentration in real estate (10 enterprises, 88 bond codes, totaling over 52,573 billion VND) and trade (6 enterprises, 70 bond codes, totaling over 20,305 billion VND). Additionally, energy, securities, and manufacturing businesses also reported bond-related violations.
Information disclosure violations were the most common type identified. 17 enterprises failed to disclose important information prior to issuance, such as the purpose of capital use, disbursement timing, and collateral details. Many entities delayed reporting issuance results, periodic financial statements, capital utilization, and principal and interest payments. Some reports contained inaccuracies regarding bond repurchase timelines or actual capital use compared to audit results.
Misuse of funds emerged as the second most serious and common violation, with 14 enterprises found to have used bond proceeds inconsistently with their approved or initially disclosed plans. Additionally, 8 enterprises transferred funds to partners or subsidiaries without documentation verifying the purpose of fund usage.
The Government Inspectorate noted that a total of 19 enterprises were involved in these two types of violations. The total value of these non-compliant bond batches amounted to over 23,575 billion VND.
Furthermore, many enterprises failed to or delayed registering and depositing bonds centrally with the Vietnam Securities Depository and Clearing Corporation (VSDC). Some issued bonds without the announced collateral, or the collateral was insufficient to meet the minimum ratio, or the security transaction for the asset was not registered. Additionally, some enterprises repurchased bonds without or inconsistently with approved plans.
Regarding the misuse of bond proceeds or their use inconsistently with announced plans, the Government Inspectorate recommended that the Ministry of Finance direct the State Securities Commission (SSC) to address 14 enterprises and related consulting organizations. If serious legal violations or significant consequences are identified, cases will be transferred to competent authorities for legal action.
Immediately, the Government Inspectorate transferred violation cases involving three enterprises—Hung Thinh Land, Hung Thinh Investment, and Hung Thinh Quy Nhon—to the Ministry of Public Security. This group was found to have failed to fully pay principal and interest, with overdue amounts reaching thousands of billions of VND. Furthermore, their bond issuance and fund utilization processes exhibited numerous violations, including complex capital usage, severe financial difficulties, and a large number of bondholders (including thousands of individual investors).
"Strict inspection and supervision by authorities are necessary to prevent collapse and risks for investors, and to avoid impacting the capital market and social order and security", the conclusion stated.
Concurrently, the Government Inspectorate recommended that the Prime Minister assign the Ministry of Finance to research and amend legal regulations. This aims to address loopholes in issuance documentation, capital usage purposes, and revenue/expenditure tracking accounts to enhance management.
Tat Dat
