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.

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

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