FiinRatings’ seminar on Vietnam's capital market for Singapore investors from the perspective of a local credit rating agency

Singapore, April 21, 2023 – A seminar on Vietnam’s capital market for investors in Singapore was held by FiinRatings with the support of the Monetary Authority of Singapore (MAS) and Enterprise Singapore – a government agency championing enterprise development under the Ministry of Trade and Industry of Singapore.  

The seminar addressed concerns of foreign investors about the common debt interest rate situation in Vietnam regarding the current context, based on FiinRatings' experience in credit rating and credit assessment for debt transactions. 

Mr. Nguyen Quang Thuan (Chairman of FiinGroup, CEO of FiinRatings) shared a framework of interest rates for transactions in the current Vietnamese capital market, which is in line with local credit ratings by FiinRatings or acceptable to Vietnamese enterprises. The interest rates are calculated in Vietnamese Dong (VND) and applied for a 3-year term. However, the cost of hedging is not included and may vary depending on transaction terms and collateral. 

Although the exchange rate risk is assessed to be relatively low, foreign investors still expect higher than the above interest rates. In fact, there exist transactions with higher interest rates due to the challenging situation in the Vietnamese capital market and the low credit performance of Vietnamese enterprises. 

According to Mr. Thuan, this can create opportunities for foreign investors, especially those with debt instruments or borrowing capital. Creditors that are exposure to debt or equity in Vietnam do not have major concerns thanks to provision, some even received considerable interest and a portion of the capital. Accordingly, the main concern of foreign investors is not achieving the target profit. 

FiinRatings, a member of FiinGroup and a technical collaboration partner with S&P Global Ratings, is a local licensed Credit Rating Agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, creditors and investors in Vietnam credit market.  

For more information, visit: https://fiingroup.vn/FiinRatings