FiinRatings Monthly Newsletter – July 2023

FiinRatings would like to send you FiinRatings Monthly Newsletter – July 2023, with the most noteworthy updates on credit rating scale, in-depth analysis reports, and independent commentaries

 

Key points from FiinRatings Monthly Newsletter – July 2023:

HIGHLIGHTS

On 14th July 2023, Mr. Nguyen Quang Thuan (CEO FiinRatings) delivered a presentation at Independent Directors Forum 2023 to share the prospects of corporate capital channels and the related challenges, including real estate credit. Some recommendations are also made regarding the role of independent BOD members in the challenging economic context of Vietnam in the second half of 2023. View the full presentation deck here.

On 4^th August 2023, FiinRatings is pleased to organize the virtual event “Vietnam Credit Market Review and Outlook: Navigating the Uncertainties” at 3:00 PM – 4:30 PM (Vietnam Time) to provide investors, issuers, and other market participants, with the most up-to-date information and market insights to identify risks and opportunities in the upcoming time. You can register and submit questions to speakers here.

MARKET UPDATES

The corporate bond market of June recorded the issuance of 28 new bonds worth VND 28.37 trillion, increasing 9.73 times from the previous month and equivalent to 64.9% YoY. the Credit Institutions account for 63.1% of the month’s total issuance volume, marking a return after five months of inactivity. Early redemption activities are also back on track with an acceleration in the Credit Institutions sector. Specifically, bonds redeemed before the maturity date in June reached nearly VND 36.15 trillion, reflecting an increase of 29.88% from the previous month and 5.61% YoY. Credit Institutions account for 78.88% of the redeemed bond value, recording a surge of 1.5 times from the previous month and 1.31 times YoY. In the second half of 2023, we assess that fulfilling debt obligations will challenge the market, as most enterprises struggle to meet stricter lending conditions amid weak financial capacity. In this context, the promulgation of Circular 06/2023/TT-NHNN to enhance the management of debt restructuring activities and investment cooperation contracts will pose more challenges to the current economy, however, assisting in filtering loans and improving the asset quality of the banking system in the long run.

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