The Ministry of Finance recently released a report on the private bond market in 2023 and 2024. According to the report, 24 companies related to the Van Thinh Phat Group have issued bonds with a total value of VND 138,200 billion (approximately USD 5.5 billion) to raise capital.
By the end of 2023, these companies had paid off more than VND 85,700 billion of principal debt. Thus, the remaining bond debt of this group is nearly VND 52,200 billion. In which, CTP Dau Tu An Dong is the company with the largest outstanding debt of nearly VND 25,000 billion.
According to the Ministry of Finance’s report, companies related to Van Thinh Phat have delayed paying more than VND 17,200 billion in principal and interest on bonds. In which, An Dong is the company with the largest outstanding debt and also the company with the most overdue bonds, with a total amount of more than VND 16,400 billion.
The report also shows that in 2024, 3 bond lots of 3 companies related to Van Thinh Phat will mature with a total value of VND 20,100 billion. Of which, more than 16,000 individual investors hold 57.7%. Most of these companies have not been able to make principal payments to bondholders. However, the Ministry of Finance said that by the end of 2023, one company had paid VND 3,500 billion in principal debt.
The Ministry of Public Security has also announced a search for victims related to the ADC-2019.01 bond code of An Dong Investment Group Joint Stock Company. This bond will mature this year, but the payment depends on the progress of the extended investigation and the ability to recover assets of the companies that were prosecuted in the case.
The Ministry of Finance also assessed that, after the incident involving SCB Bank and Van Thinh Phat, the corporate bond market has lost confidence and liquidity. Many investors are selling bonds or asking companies to buy back bonds before maturity.
In addition, in 2023, 5 audit firms that reported financial statements for units related to the issuance of private corporate bonds and in the Van Thinh Phat ecosystem were inspected, including: ATC Auditing and Valuation Company, Phuong Nam Accounting and Auditing Co., Ltd., CPA Auditing, I.T.O Auditing, and Hoang Gia Viet Nam.
According to the Ministry of Finance, the agency has suspended the practice of auditing for 12-36 months and reminded auditors whose quality does not meet the requirements of professional standards. Companies with auditors who sign audit reports that do not meet the requirements will also be suspended for 3-6 months; or not approved to provide financial reporting audit services to units with public interest, including the issuance of private corporate bonds in 2023-2024.
