Hana Ratings, from Korea, has been approved to provide credit rating services in Vietnam. This is part of a wider push to improve the quality of Vietnam’s corporate bond market after a number of high profile cases of fraud were revealed.
For example, in 2022, Hanoi-based developer of luxury apartment projects, Tan Hoang Minh, was alleged to have defrauded investors of up to VND 10 trillion though corporate bond issuances. This has led to the government issuing Decree 65 which tightened regulations on the sale of corporate bonds including requiring credit ratings for some bonds.
Specifically, credit rating reports are required when bonds issued exceeds VND 500 billion or US$19.6 million within a year, surpasses half of the charter capital of the issuers, or if their total outstanding bonds exceeds their charter capital.
Of note, in 2023, just three credit rating agencies were licensed to operate in Vietnam due to its stringent regulatory framework. To obtain a licence, a credit rating agency must have a minimum paid-up capital of VND 15 billion, a team of at least 15 qualified analysts, and a credit rating committee with no fewer than five qualified members.
See also: Vietnam Bond Market News