FiinRatings Monthly Newsletter – August 2023

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

Key points from FiinRatings Monthly Newsletter – August 2023:

HIGHLIGHTS

On 19 July 2023, The Hanoi Stock Exchange (HNX) launched a dedicated trading platform for privately placed corporate bonds, a strategic move that is set to list over 1,600 individual corporate bond tickers for trading. Talking at the Economic Forum of National Assembly Television, Mr. Nguyen Quang Thuan (CEO of FiinRatings) shared his insights on the market situation after one month of operation. View more detail HERE (Vietnamese only) 

On 26 July 2023, Mr. Nguyen Quang Thuan (CEO of FiinRatings) presented at the "July Dialogue: Macroeconomics and Stock Market" event organized by the Press Club of the Securities Sector. From the perspectives of a financial data analytics service provider and leading firm in credit ratings and experience in debt capital transactions for Vietnamese enterprises, Mr. Thuan gave a keynote presentation titled "Business Prospects of Vietnam Enterprises and Implications for the Development of Vietnam's capital market." The speech gave a specific analysis of the business situation and prospects of Vietnamese enterprises in 2023. Refer to the presentation deck HERE (Vietnamese only). 

On August 4th, 2023, FiinRatings successfully hosted a webinar, titled "Vietnam Credit Review and Outlook: Navigating the Uncertainties" with the participation of representatives from corporates, financial institutions, and investment funds both nationally and internationally. Representatives from FiinRatings' analytical team provided valuable insights into Vietnam's current macroeconomic situation, the current situation in the credit market, and updated policy development. Moreover, they highlighted the credit outlook of different sectors and also company-specific factors under CRA’s perspective. Revisit our webinar and download the presentation deck HERE 

MARKET UPDATES

As of 29 August 2023, the corporate bond market recorded 18 successful issuances worth a total of 21.36 trillion VND, which decreased by about 31.69% in comparison to the previous month and equivalent to 91.15 % YoY. The issuance value of the credit institutions sector continued to account for a large proportion, with 55.65% of the total issuance in August. The scale of premature redemption of bonds also witnessed a decrease, with a total volume of 12.36 trillion VND, a decrease of 50.85% compared to July and 44.21% compared to the same period last year. The structure of repurchased bonds remained stable, with Credit Institutions making up the majority (49.39%), followed by Real Estate and other industries. According to FiinRatings, in the upcoming months, the pressure of maturity will continue to be a common challenge for the whole market. Specifically, the fourth quarter of 2023 is the peak of bond maturity with a total value of up to 65.5 trillion VND (excluding deferred lots), nearly 80% of which belongs to the Real Estate sector. In this context, on August 23, 2023, the State Bank of Vietnam issued Circular No. 10/2023/TT-NHNN (Circular 10) to suspend the enforcement of provisions related to the activities of refinancing loans and cooperative investment contracts. This movement partly allows struggling businesses to raise new capital sources, thereby enhancing the recovery potential of the Real Estate sector, particularly the overall market in general. 

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