The potential for foreign investment in a domestic credit rating agency in Vietnam

15 November 2020 - 03:57 PM Alternate Text


Asia Development Bank has just issued the publication analysing Vietnam corporate bond market and the need for a domestic credit rating agency (CRA) in Vietnam in September 2020. The report focuses on analysing Vietnam regulatory enviroments for bond market and credit ratings; reviewing Vietnam’s bond market and assessing the importance for having a domestic CRA in operation to support the primary market and secondary market of corporate bonds in Vietnam.

Fiin Ratings has been featured in the Report as one of the first two licensed CRAs in Vietnam: In March 2020, FiinGroup (formerly known as StoxPlus) became the second credit rating agency to be licensed by the Ministry of Finance. Established in 2008, the group is a data, research, and analytics provider in Viet Nam. The group employs over 100 staff. Banks and asset managers in Viet Nam and some offshore clients subscribe to its platform for accessing corporate research and related reports. In 2019, it issued over 7,000 business reports on SMEs in Viet Nam and has developed an automated credit scoring model, which will be used to determine the credit ratings of SMEs. Fiin Ratings, a sub-brand of FiinGroup, expects to launch its rating service in 2020 with initially an “investor pay” model. Internationally, many rating agencies started with an “investor pay” model, but the trend is to transition to an “issuer pay” model as the market develops.”

The report can be accessed here.

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