FiinRatings Monthly Newsletter - September 2022

FiinRatings Newsletter - September 2022 - a monthly round-up of the most noteworthy updates and analyses across FiinRatings

 

FiinRatings Newsletter - September 2022 - a monthly round-up of the most noteworthy updates and analyses across FiinRatings

HIGHLIGHTS

At the end of August 2022, the capital market focused on the policy update by government agencies. The Ministry of Finance is urgently finalising the amended Decree No. 153/2020/ND-CP dated December 31, 2020, of the Government on the activities of issuing and trading corporate bonds in the domestic market as well as issuing corporate bonds to the international market, under the direction of the Prime Minister in Directive 13/CT-TTg dated August 29, 2022, to promote the sustainable development of real estate market.

Regarding investing in corporate bonds, Mr. Nguyen Quang Thuan, CEO of FiinRatings, gave several specific recommendations for credit institutions. The credit institutions should focus on supervising, monitoring, and evaluating the purpose of using the capital of bond issuers. It becomes essential in the context of "hard" and "soft" foundations for the corporate bond market are still being completed.

When trading corporate bonds is centralised, information disclosure is improved, and credit rating is applied effectively, the State Bank of Vietnam might consider changing risk management regulations. Explore the detail of the interview HERE.

In an interview with VnEconomy, Mr. Nguyen Tung Anh - Assistant Manager, Credit Risk Research – FiinRatings, shared some insights on whether Vietnam would affect China's debt crisis and the key points to avoid these events. Explore the detail of the interview HERE.

MARKET UPDATES

In August, there was a significant decline in issuance in the corporate bonds market. Specifically, this month's issuance was VND 9,4 trillion, decreasing 84% y-o-y and 58% from last month. This month also has the lowest issuance volume of the year, which is even lower than February, which is cyclically low due to Tet. We assess the main reason could be due to investors' and issuers' caution, waiting for the new policies. While issuers wait for the policies to come up with suitable plans, individual investors are also not interested in bonds as they have not been able to grasp the policies and regulations.

You can refer to the bulletin for details HERE.

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