Vietnamese corporate bond market – Adjustments to develop sustainably

Within the first weeks of April, the authorities have handled several violations related to the corporate bond market (“C-bond”). Deputy Prime Minister Le Minh Khai has just signed and promulgated Official Dispatch No. 304/CD-TTg dated 07 April 2022, of the Prime Minister to rectify corporate bond market activities and land use rights auction.

 

Within the first weeks of April, the authorities have handled several violations related to the corporate bond market (“C-bond”). Deputy Prime Minister Le Minh Khai has just signed and promulgated Official Dispatch No. 304/CD-TTg dated 07 April 2022, of the Prime Minister to rectify corporate bond market activities and land use rights auction.

The series of events is a hot topic for Vietnamese investors and market participants. Licensed by the Ministry of Finance and has announced the credit rating results of 5 issuers, including three real estate businesses in Vietnam, we would like to share our perspective as a credit rating agency on the events’ possible impacts on Vietnam capital market.

This commentary covers 4 key highlights including:

• Capital mobilization through C-bonds may decrease, but there will also be changes in quality
• Impacts of C-bond quality on the banking industry credit quality
• How does it affect the Real Estate Industry?
• Not all issuers contain high risk, there are still opportunities in the corporate bond market for firms with a solid fundamental base and would like to disclose their business risk profile to the public.

Read full commentary HERE

Contact us:
For Media Inquiries:
Anh Vu - PR & Marketing Specialist
Phone: +84 (0) 916 111 231
Email: anh.vu@fiingroup.vn
 
Client Advisor Contact
Hue Ba - Client Advisor, FiinRatings
Mobile: +84 971 390 935
Email: hue.ba@fiingroup.vn 

« Go Back