Kinh tế

Improve the country’s credit rating to “Investment” by 2030

In the context that cheap loans for Vietnam are increasingly limited, improving the national credit is an inevitable direction to arrange capital in the international market. This is also the content emphasized at the conference held by the Ministry of Finance last weekend.

If the ladder is the credit rating of Vietnam, according to Moody’s, this is the Philippines, we have to take another 4 steps to reach the “Investment” credit rating. We are currently at the “Speculation” level. The difference is that the loan is about 1 percentage point cheaper, that is, borrowing 1 billion USD will save 230 billion VND, not only cheaper, but also can borrow more and borrow longer.

Improve the national credit rating to

In the context that cheap loans for Vietnam are increasingly limited, improving the national credit is an inevitable direction to arrange capital in the international market. (Illustration image – Photo: Investment Newspaper)

“Credit ratings assess a country’s ability as well as readiness to repay debt obligations in the future. The higher the credit rating, the lower the borrowing costs and the better the ability to participate in the market. “, said Mr. Truong Hung Long, Director of the Department of Debt Management and External Finance, Ministry of Finance.

International credit ratings contribute to business enhancement

Similar to national credit rating will bring benefits to the budget, credit rating for each business is becoming an increasingly urgent requirement. Although there are only a few enterprises in Vietnam currently receiving international credit ratings and these ratings, according to regulations, cannot exceed Vietnam’s national credit rating, however in reality has demonstrated a clear effect for businesses when actively participating in credit rating.

With the Electricity of Vietnam Group, thanks to the credit rating, new businesses can borrow foreign capital without going through the Government guarantee process with a procedure that lasts up to more than 4 years. EVN’s member corporations, after being assessed for credit, do not need to borrow from the group, but can arrange international capital by themselves.

Or like PBank, which has also arranged an international loan of 300 million USD thanks to its credit rating. Not only is it a loan, but the credit assessment process also helps businesses improve their internal resources.

“Corporate credit ratings are highly dependent on the national credit rating. The companionship of the country and businesses will help us achieve our goals,” said Ms. Nguyen Thi Hai Binh, Deputy Head of the Research Department. and Supervision Policy Coordination, National Financial Supervisory Commission, emphasized.

Currently in Vietnam, there are 2 enterprises licensed by the Ministry of Finance to carry out credit rating assessment, but the number of credit rating contracts each year is less than 10 contracts.

Recommendations to promote credit rating

In 2021, Vietnam is the only country globally rated by all three credit rating agencies Fitch, Moody’s, and S&P with a positive outlook, with Vietnam’s plus point being its rapid economic growth. and macro stability. However, to be able to upgrade the credit rating from “Speculation” to “Investment” in the next 8 years, there are still many challenges.

“Transparency in information is the top requirement for credit rating agencies to capture Vietnam’s information and data in the most direct way and with as little delay as possible,” said Jason Ving. Head of Country Rating Consulting for Southeast Asia, Standard Chartered Bank.

Improve the national credit rating to

In 2021, Vietnam is the only country in the world with a positive outlook by all three credit rating agencies Fitch, Moody’s, and S&P. (Illustration image – Photo: Investment Newspaper)

“Handling bank bad debts existed in the past, especially related to state-owned enterprises, because the state-owned enterprise sector is very large. The second is the risk that state-owned enterprises also entail risk of contingent liabilities from the Government,” said Mr. Truong Hung Long, Director of the Department of Debt Management and External Finance, Ministry of Finance.

“It is important to have a dedicated team to do this. The commander must be passionate, decisive, aware, urge the apparatus, go to meet the ministries … for everyone to support and arrange give me interviews,” emphasized Mr. Nguyen Xuan Nam, Deputy General Director of Electricity of Vietnam.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!

You are reading the article Improve the country’s credit rating to “Investment” by 2030
at Blogtuan.info – Source: vtv.vn – Read the original article here

Back to top button