Vietnam economic growth is expected to maintain a strong growth in this 2023 given its resilience to several domestic and external turbulences. However, since Vietnam is still a banking-based economy and there have been a number of headwinds in the capital and credit markets recently including the increasing corporate bond defaults and the poor performance of real estate sector that would affect the banking outlook.

According to our calculation, the total value of bonds in default is estimated at 12% over the non-bank corporate bonds outstanding while the real estate bond default ratio is calculated at 20,2% as of 17 March 2023. To what extent the bond default could have impacts including the banking sector's outlook given the current credit market environment.

As a Vietnam’s leading credit rating agency we would like to bring a most up-to-date information and market insights to investors and market participants to do business with confidence in Vietnam.