Banking & Finance

According to analysts, the weakest points of the individual corporate bond market in particular and the financial market in general are inspections and supervision. In order to develop a sustainable bond market, it is necessary to strengthen inspections and supervision as well as boost transparency, while supplementing legal regulations and investor protection mechanisms.

Exchange-traded funds (ETF) capital in Vietnam remained at a positive level last week, of $1 million, despite negative ETF capital flows rising sharply in Southeast Asia, reaching $107 million, according to the KIS Vietnam Securities Corporation.

According to VnDirect, with credit in the real estate sector being tightened, investors will become more cautious in expanding their land funds. The trend in the future will be project cooperation between Vietnamese investors and foreign developers. VnDirect also expects the real estate market to see supply recover this year as developers focus on boosting sales to improve cash flows.

The French Development Agency (AFD) is seeking to develop green financing in Vietnam and provide technical support to the State Bank of Vietnam (SBV) and banks in order to fulfill the commitments Vietnam made at COP26 last November to reach net-zero emissions by 2050, according to Mr. Philippe Orliange, Executive Director of the AFD. It will conduct market research this year to assess the ability to provide multi-sectoral credit to a number of banks in the country.

Under the Project on Improving the National Credit Rating to 2030, Vietnam is striving to reach Investment grade by 2030. According S&P and Fitch, its credit rating is currently “BB”, while Moody’s has it at “Ba3”. All three give Vietnam a positive outlook.

There remains much room for growth in Vietnam’s stock market in the medium and long terms, analysts believe, because positive supporting factors from the macroeconomy are still in place. The State Securities Commission (SSC) said it is actively completing the legal framework and formulating a strategy to develop the stock market to 2030.