Rating Insight #1 | Q1-2021: Vietnam Corporate Bond Outlook 2021

We are pleased to send you the report Rating Insight #1 – Outlook of Vietnam Corporate Bond Market 2021 of the Fixed Income Securities Research of FiinGroup.

The corporate bond market has a robust growth in 2020 with newly issued value of VND 429.5 trillion (+ 28.3% YoY). In the context of tighten traditional banking credit and ongoing uncertainty of COVID-19 pandemic, bond has played an important role to provide medium-and-long-term funding for the development of Vietnamese businesses.

In 2020, the debt-service coverage of issuers is generally stable. However, there is a clear divergence in 2020 between firms, and therefore investors need to evaluate each issuer and their bond in detail to get specific information, follow up on the financial situation of the business in order to better gauge issuers’ debt-servicing capacity as well as their plan and procedures in unexpected circumstances.

Additionally, with new legal regulations becoming effective in 2021, we believe that the corporate bond market will continue thriving in 2021 yet will not surpass the peak achieved in 2020. Public offerings, which accounted for only 6.5 percent of the total issued value in 2020, will have more significant proportion in the overall corporate bond market.

You can refer to the report for details HERE.