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The Potential for Foreign Investment in a Domestic Credit Rating Agency in Viet Nam

The Potential for Foreign Investment in a Domestic Credit Rating Agency in Viet Nam Download (727.45 KB)

Publication Type:

Report

Publisher:

Asian Development Bank (ADB)


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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