Moody's backs Vietnam's bid to boost credit ratings

Moody's backs Vietnam's bid to boost credit ratings

Deputy Minister of Finance Tran Quoc Phuong met with a high-level delegation from the international credit rating agency Moody's Ratings at the Ministry of Finance (MoF) on May 16.

MoF and Moody's Ratings cooperate to develop transparent capital markets

Moody’s delegation comprised Wendy Cheong, managing director for Asia-Pacific, regional business leaders, and representatives from Vietnam Investors Service and Credit Rating Agency JSC (VIS Rating).

Cheong spoke of her appreciation of the initiatives to develop Vietnam's capital and financial markets, emphasising the key role of regulatory agencies, especially through strengthening corporate governance, ensuring transparency, and avoiding conflicts of interest.

"Moody's is committed to promoting local capital and debt markets globally. Leveraging decades of market expertise, a global network of member agencies, and world-class analytical capabilities, Moody’s maintains strong partnerships with domestic credit rating organisations, not just across Asia-Pacific but worldwide," said Cheong.

Cheong also praised VIS Rating’s contributions as Moody’s local affiliate in Vietnam, highlighting its work in expanding coverage of new issuers, a complex, expertise-driven process. She emphasised that VIS Rating’s efforts are laying critical groundwork for the development of Vietnam’s credit rating market

Vietnam is currently cooperating with many prestigious credit rating organisations. This helps large international investors gain a more accurate and comprehensive view of Vietnam's economic development prospects. Deputy Minister of Finance Tran Quoc Phuong stressed the importance of objective and honest assessments from reputable international credit rating organisations.

"Vietnam's economy is in the process of deep integration and would like to claim its position on the economic map as well as draw in global investment capital," said Phuong. "The MoF would like to cooperate with Moody's in national credit rating, and other areas and activities related to the development of Vietnam's financial and capital market."

Phuong added, "Vietnam's capital market is undergoing rapid development to meet global standards. Support services such as credit rating are important factors, helping the market keep pace with the development of global finance, and new regulations now mandate credit ratings and transparency for bond issuers, strengthening risk management in capital mobilisation."

The Deputy Minister urged VIS Rating to enhance its capabilities and strive to become Vietnam’s premier credit rating agency, meeting both domestic demands and international standards. With Vietnam home to numerous large enterprises and developing two regional financial centres, the need for reliable credit ratings is set to grow significantly, fuelling a more dynamic capital and financial market.

"VIS Rating needs to become a model of a credit rating organisation in Vietnam. This is completely achievable if there is adequate technical support and knowledge transfer from Moody's," said Phuong.

VIR