FiinGroup Chairman delivered views about macroeconomic and credit market outlook at Hanoi CFO Forum 2024

Hanoi, January 11th, 2024 - Mr. Nguyen Quang Thuan (Chairman of FiinGroup) participated in speaking and coordinating Hanoi CFO Forum 2024 with the theme "Shaping the Future of Finance: Innovation, Application and Transformation". To promote sustainable development, the Vietnam Club of Chief Financial Officers (CFO) has organized this forum to provide senior financial administrators with the opportunities to network, exchange insights, and suggest methods for enhancing the efficiency of their operations. 

In the presentation "Macroeconomic Outlook 2024 and Implications for Financing Strategy", Mr. Thuan provided detailed assessments of growth drivers as well as main risks and challenges for Vietnam on the path to economic recovery in 2024. Chairman of FiinGroup also shared the prospects of Vietnamese credit market in 2024 and 06 suggestions for an Adaptive Financing Strategy 2024 from the perspective of domestic credit rating agency. 

Below are some highlights taken from the keynote presentation:   

• Vietnam's economy in 2024 is in the process of recovering, driven by the development of exports, improved FDI due to migration from China, the recovery of domestic consumer demand, and increased state investment disbursement. In addition, Vietnam will encounter several obstacles due to the protracted stagnation of the real estate market; the mobilization of business capital remains arduous, and both the US and Chinese economies have yet to fully rebound to their previous levels. Furthermore, there are geopolitical concerns and hurdles in policy implementation. 

• The bank credit channel is anticipated to eventually eliminate the credit allocation mechanism, while simultaneously implementing distinct risk coefficients for each enterprise to facilitate capital accessibility. The State Bank of Vietnam is expected to maintain its policy of permitting debt rescheduling in accordance with Circular 02. 

• The corporate bond issuing activities have regained their vitality. The potential implementation of Decree 08 aims to alleviate legal obstacles encountered in real estate development initiatives. 

• The stock market's capital scale remains somewhat constrained as compared to credit capital channels and corporate bonds. Forecasting mobilization plans becomes challenging because of significant volatility in the stock market. 

• Additional sources of funding, such as Export Credit Arrangement (ECA), project sales, and optimizing working capital, can serve as effective and timely solutions based on the specific industry and business features. 

• 06 recommendations under an Adaptive Financing Strategy for 2024 including the review of CAPEX plan, enhancing credit profile, diversifying the source of capital, managing of financial risks. 

For more details of the presentation deck, click HERE (Vietnamese version only)

About FiinGroup  

Established in 2008, FiinGroup is a leading integrated service provider of financial data, business information, industry research, credit rating service, and other data-driven analytics services for the Vietnam market. We are serving more than 1,000 local and foreign financial institutions and corporations through our fintech platform as a service (PaaS), annual packages and on-call services. 

FiinRatings Joint Stock Company (“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. FiinRatings has developed and standardized credit rating models for more than 50 industries and sub-sectors of Vietnamese enterprises.