Vietnam Bond Beacon to Vietcap's Institutional Clients

On May 30^th, 2023, Mr. Thuan Nguyen (CEO of FiinRatings) spoke with more than 100 institutional clients of Vietcap Securities via a Zoom Webinar. The latest updates on the corporate bond market, default situation, credit market outlook and implications for banking sector and equity market in the context of the recent new policy development have been discussed.

With main concerns on real estate bonds, Mr. Thuan assessed that despite various policy developments, new issuance is still sluggish, and the market focuses more on early redemptions. Given the poor earnings performance of the real estate sector in recent quarters in a challenging credit environment, major headwinds are still present and ahead for the real estate sector in the time to come. This topic raised many questions about the market outlook, liquidity, regulatory developments, and debt restructuring including possible settlement for investors and bondholders having credit and investment exposure in Vietnamese company.

Mr. Thuan also shared his view from a credit rating perspective and from his experience on recent services provided by FiinRatings to investors notably credit assessment, credit due diligence and project finance ratings to support inbound debt transactions. Despite the market turmoil, there are still opportunities for private credit investments in investment-grade companies and even in some speculative issuers who could not raise funds from domestic market due to credit tightening. In addition, Mr. Thuan shared the credit performance of some sectors where companies faced temporary difficulties in their funding profile despite fundamentally sound credit performance in the medium and long term.

As a domestic credit rating agency, we are positioned to provide an independent opinion to market participants, including investors, issuers, intermediary financial institutions, and regulators. It is an honor for us to accompany Vietcap in sharing data-driven analysis and on-the-ground market information with international investors as well as institutions with exposure and appetite for the Vietnamese market.

The presentation deck can be downloaded HERE