Transactions at a bank (Photo: VNA)
Hanoi (VNA) – Many international credit
rating organisations want to join the Vietnamese market, heard a seminar in Ho
Chi Minh City on April 16.
Nguyen Hoang Duong, Deputy Director of the Finance
Ministry’s Department of Banking and Financial Institutions, said at the
seminar that credit rating plays an important role in the financial market in
general and the bond market in particular.
The activity provides information for investors to
assess financial and debt payment capacity of targeted financial products as
well as relevant risks, while helping ministries and agencies amend regulations
on capital safety in the banking, stock and insurance sectors, he explained.
In recent years, Vietnam’s corporate bond market
has grown rapidly, requiring the establishment of credit rating organisations in
order to promote the publicity and transparency of the market.
The Finance Ministry will grant licences
to a maximum of five credit rating firms under a planning scheme on credit rating
service development by 2020 with a vision towards 2030, according to Duong.
Nguyen Hoang Duong, Deputy Director of the Finance Ministry’s Department of Banking and Financial Institutions, speaks at the seminar (Photo: thoibaotaichinhvietnam.vn)
He added that two firms have been licensed and become
operational in the domestic market.
A number of international firms have also shown
their interest in the Vietnamese market, and the ministry will consider their
proposals, he said.
Donald Lambert, Principal Private Sector Development
Specialist from the Asian Development Bank (ADB)'s Southeast Asia Department, told
the press that the participation of prestigious rating organisations would held
Vietnam’s credit rating services come closer to international standards, and
make the country’s corporate bond market and the capital market as well develop
The seminar on developing credit rating was jointly
held by the Ministry of Finance and the ADB.
The ministry said it will further coordinate with
international organisations to organise relevant events to raise the business
community’s awareness about the use of credit rating in bond issuance./.