The Potential for Foreign Investment in a Domestic Credit Rating Agency in Viet Nam
This paper evaluates the Viet Nam bond market from a global credit rating agency’s perspective and examines the potential of an international rating agency’s entry to the Vietnamese market through a technical service agreement.
Viet Nam's corporate bond market has grown rapidly since 2017 and issuances of $12.8 billion in 2019 were larger than those for Indonesia and the Philippines. Private placements accounted for 94% of corporate bond issuances in 2018 and 2019 following easing of disclosure requirements and issuance conditions. However, the lack of a credit culture poses significant risks to the bond market and the financial sector, particularly as individual investors own almost a fourth of all bond issues.
This paper evaluates the Viet Nam bond market from a global credit rating agency’s perspective and examines the potential of an international rating agency’s entry to the Vietnamese market through a technical service agreement.
Contents
- Introduction
- Viet Nam’s Economy
- Regulatory Environment
- Viet Nam’s Bond Market
- Domestic Credit Ratings
- Appendixes
Published October 2020
