Transactions at a bank (Photo: VNA)Hanoi (VNA) – Many international creditrating organisations want to join the Vietnamese market, heard a seminar in HoChi Minh City on April 16.
Nguyen Hoang Duong, Deputy Director of the FinanceMinistry’s Department of Banking and Financial Institutions, said at theseminar that credit rating plays an important role in the financial market ingeneral and the bond market in particular.
The activity provides information for investors toassess financial and debt payment capacity of targeted financial products aswell as relevant risks, while helping ministries and agencies amend regulationson capital safety in the banking, stock and insurance sectors, he explained.
In recent years, Vietnam’s corporate bond markethas grown rapidly, requiring the establishment of credit rating organisations inorder to promote the publicity and transparency of the market.
The Finance Ministry will grant licencesto a maximum of five credit rating firms under a planning scheme on credit ratingservice 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 becomeoperational in the domestic market.
A number of international firms have also showntheir interest in the Vietnamese market, and the ministry will consider theirproposals, he said.
Donald Lambert, Principal Private Sector DevelopmentSpecialist from the Asian Development Bank (ADB)'s Southeast Asia Department, toldthe press that the participation of prestigious rating organisations would heldVietnam’s credit rating services come closer to international standards, andmake the country’s corporate bond market and the capital market as well developmore sustainably.
The seminar on developing credit rating was jointlyheld by the Ministry of Finance and the ADB.
The ministry said it will further coordinate withinternational organisations to organise relevant events to raise the businesscommunity’s awareness about the use of credit rating in bond issuance./.
VNA
