Vietnamese banks" credit ratings upgraded

Credit ratings agency Fitch Ratings has recently revealed upgrades for several banks, in the wake of its decision to raise Vietnam's national credit rating to BB+ with a long-term outlook of "Stable".

Vietnamese banks' credit ratings upgraded hinh anh 1

Customers at a transaction point of VietinBank. Illustrative image (Photo: VNA)

Credit ratings agency Fitch Ratings has recently revealed upgrades for several banks, in the wake of its decision to raise Vietnam's national credit rating to BB with a long-term outlook of "Stable".

It upgraded the Long-Term Foreign-Currency Issuer Default Ratings (IDR) of three major banks, namely VietinBank, Vietcombank, and Agribank, from BB to BB with a "Stable" outlook. Additionally, the Military Bank (MB)'s credit rating has also been elevated to BB with a "Stable" outlook.

With improving business environment, Fitch Ratings also raised the operating environment (OE) scores for the Vietnamese banking system, anticipating that the economy will continue to recover and grow robustly over the medium term.

Credit conditions have gradually eased since the beginning of this year, thanks to decisive and appropriate monetary policy actions. At the same time, Fitch anticipated the financial efficiency of the Vietnamese banking sector to recover next year, buoyed by rising credit demand and improved net interest margins of commercial banks.

The non-performing loan (NPL) ratio is also expected to improve as the economy rebounds. Fitch forecast a GDP growth of 6.3% for Vietnam in 2024. Additionally, stable asset quality indicators and enhanced profitability contribute to the improved credit ratings for these banks.

Dr. Vo Tri Thanh, member of the National Financial and Monetary Policy Advisory Council, said the upgrade holds significance as it enables banks to access international funding sources more easily, leading to cost saving through securing capital at more favourable interest rates.

He said with the current credit rating, there is a need for further improvement in financial health, position and brand to strengthen investor confidence, expand business opportunities, and improve business prospects./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

Banks reduce profit expectations for 2024

Banks reduce profit expectations for 2024

A majority of banks have lowered their profit expectations for 2024.
A new tax management approach needed to promote business household development

A new tax management approach needed to promote business household development

VCN - The Tax Department needs to change tax management methods to facilitate the business environment, promote the development of business households, ensure accurate, sufficient, and timely tax collection, and prevent budget losses.
Fifteen Vietnamese banks named in the global top 500 banking brands

Fifteen Vietnamese banks named in the global top 500 banking brands

Fifteen Vietnamese banks are named on the world’s top 500 banking brands, announced by the world’s leading brand valuation consultancy Brand Finance.
Digital infrastructure strategy approved

Digital infrastructure strategy approved

Permanent Deputy Prime Minister Nguyen Hoa Binh recently signed a decision approving the digital infrastructure by 2025 with a vision to 2030.

More News

Drastically handle tax debts in the last months of the year

Drastically handle tax debts in the last months of the year

VCN – The General Department of Taxation has directed tax branches to closely supervise and control the implementation of enforcement measures to ensure the debt collection targets and limit new debts.
Realized social investment capital is estimated at VND2,417.2 trillion

Realized social investment capital is estimated at VND2,417.2 trillion

VCN - Lending interest rates tend to decrease, production for export has grown well; policies on tax exemption, reduction, extension and deferral continue to be implemented to support businesses and production establishments, promoting new investment and production expansion, increasing the attraction and implementation of total social investment capital.
State-owned banks struggle to increase capital

State-owned banks struggle to increase capital

While private joint stock commercial banks have increased capital significantly so far this year, the capital for State-owned commercial banks has remained stagnant.
State budget revenue reached 85.1% of estimate

State budget revenue reached 85.1% of estimate

VCN - The Ministry of Finance said that in the first 9 months of 2024, the total state budget revenue is estimated at 1,448.2 trillion VND, equal to 85.1% of the estimate, of which many revenue items have achieved good collection progress and growth compared to the same period in 2023. However, in recent months, budget revenue has begun to face difficulties, etc.
Budget expenditure in the first three quarters of 2024 reached about VND 1,256.3 trillion

Budget expenditure in the first three quarters of 2024 reached about VND 1,256.3 trillion

VCN - The Ministry of Finance said that in the first 9 months of 2024, the state budget spent about VND 1,256.3 trillion, equal to 59.3% of current apropriation, an increase of 1.4% over the same period in 2023.
Increasing institutional investors – improving quality of corporate bond market

Increasing institutional investors – improving quality of corporate bond market

VCN - The structure and quality of investors have been one of the limitations of the corporate bond market in recent times. To improve the quality of the market, increasing institutional investors and improving the quality of investors, including individual investors, is one of the solutions that have been implemented by management agencies, thereby building a sustainable corporate bond market.
Urgent measures to restore production post-disaster

Urgent measures to restore production post-disaster

VCN - To quickly restore agricultural production after storm No. 3 and floods, the Prime Minister assigned the Ministry of Finance to guide the immediate implementation of financial support policies, tax exemptions, reductions, and extensions, land rents, water surface rents, etc. for those affected by storms and floods; continue to research to have policies to exempt and reduce fees and charges for those affected.
Risks for the economy when cash flow has not yet been put in to production and business

Risks for the economy when cash flow has not yet been put in to production and business

VCN - Investment channels in Vietnam have a lot of potential, but financial and banking expert Dr. Nguyen Tri Hieu, Director of the Institute for Research and Development of Global Financial and Real Estate Markets, said that cash flow into production and business is still modest, leading to risks for the economy.
An open banking system is essential for a smart city

An open banking system is essential for a smart city

Building a smart city with a smart payment system playing a key role has helped Hanoi gradually transform and make breakthroughs in the process of development, said Ha Minh Hai, Vice Chairman of the municipal People's Committee.
Read More

Your care

Latest Most read
Banks reduce profit expectations for 2024

Banks reduce profit expectations for 2024

A majority of banks have lowered their profit expectations for 2024.
A new tax management approach needed to promote business household development

A new tax management approach needed to promote business household development

VCN - The Tax Department needs to change tax management methods to facilitate the business environment, promote the development of business households, ensure accurate, sufficient, and timely tax collection, and prevent budget losses.
Fifteen Vietnamese banks named in the global top 500 banking brands

Fifteen Vietnamese banks named in the global top 500 banking brands

Fifteen Vietnamese banks are named on the world’s top 500 banking brands, announced by the world’s leading brand valuation consultancy Brand Finance.
Digital infrastructure strategy approved

Digital infrastructure strategy approved

Permanent Deputy Prime Minister Nguyen Hoa Binh recently signed a decision approving the digital infrastructure by 2025 with a vision to 2030.
Drastically handle tax debts in the last months of the year

Drastically handle tax debts in the last months of the year

VCN - From the beginning of 2024, the General Department of Taxation requested and assigned tax departments to ensure the completion of tax debt collection targets in 2024, and enhance responsibility in tax debt management and collection, contributing to
Mobile Version