Fitch upgrades ratings of 7 banks in Vietnam, including StanChart, HSBC, ANZ

By Tri Duc
Fri, December 15, 2023 | 9:44 am GMT+7

Fitch Ratings has upgraded the long-term foreign-currency issuer default rating (IDR) of six banks in Vietnam to ‘BB+,’ one to ‘BB,’ and one unchanged at ‘BB-,’ the rating agency announced Wednesday.

Fitch made the move after it upgraded Vietnam's long-term foreign-currency issuer default rating last week, to ‘BB+’ from ‘BB’ with stable outlook.

Six banks with improved ratings at ‘BB+’ and stable outlook are Vietcombank, VietinBank, Agribank, Standard Chartered Bank Vietnam, HSBC Vietnam, and ANZ Vietnam.

For Vietcombank, VietinBank, and Agribank, three state-owned or state-controlled banks, the upgrade reflected the high possibility that state support is likely to be forthcoming in times of need.

Fitch Ratings upgrades VietinBank to 'BB+' on December 13, 2023. Photo courtesy of the Vietnam News Agency.

Fitch Ratings upgrades VietinBank to 'BB+' on December 13, 2023. Photo courtesy of the Vietnam News Agency.

For three foreign banks, the moves followed the upgrade of Vietnam's sovereign rating to 'BB+', from 'BB', with a stable outlook, Fitch Ratings said.

Regarding Military Bank (MBBank), the long-term foreign-currency issuer default rating (IDR) was upgraded to 'BB' from 'BB-' and the government support rating (GSR) to 'bb' from 'bb-'. The lender was also given a stable outlook.

About Asia Commercial Bank (ACB), the long-term foreign-currency issuer default rating (IDR) was affirmed at 'BB-' with stable outlook. The rating action was in line with Fitch's view of the state's improving ability to support the bank, in times of need, as indicated by the upgrade in Vietnam's sovereign rating.

On December 8, Fitch Ratings upgraded Vietnam's Long-Term Foreign-Currency Issuer Default Rating (IDR) to “BB+”, from “BB” with a stable outlook. The upgrade reflects Vietnam's favorable medium-term growth outlook, underpinned by robust foreign direct investment (FDI) inflows, which Fitch Ratings expects will continue to drive sustained improvements in its structural credit metrics.

Comments (0)
  • Read More
Bright prospects seen for banking, securities, real estate, retail stocks next year: broker

Bright prospects seen for banking, securities, real estate, retail stocks next year: broker

Banking, securities, real estate and retail stocks have the potential to do well in 2025, says Dao Hong Duong, director of sectors and stock analysis with VPBank Securities (VPBankS).

Banking & Finance - Mon, November 11, 2024 | 9:37 pm GMT+7

Taiwan SpaceX supplier Universal Microwave Technology to double Vietnam investment

Taiwan SpaceX supplier Universal Microwave Technology to double Vietnam investment

Taiwan-based Universal Microwave Technology, a supplier for billionaire Elon Musk’s SpaceX, has said that it will increase its investment in Vietnam to a maximum $12 million.

Industries - Mon, November 11, 2024 | 7:51 pm GMT+7

Vietnam central bank sticks to ‘goldization’ fight, will consider open gold exchange

Vietnam central bank sticks to ‘goldization’ fight, will consider open gold exchange

Vietnam’s central bank, the State Bank of Vietnam (SBV), will continue to discourage the use of gold as investment or an asset to speculate on, says Governor Nguyen Thi Hong.

Banking - Mon, November 11, 2024 | 5:48 pm GMT+7

Vietnam records highest rate of online shopping in Asia Pacific: PwC

Vietnam records highest rate of online shopping in Asia Pacific: PwC

Vietnam stands out among the Asia Pacific region with the highest rate of online shopping. Vietnamese consumers are also increasingly prioritizing sustainability in their consumption practices, write PwC Vietnam analysts.

Consulting - Mon, November 11, 2024 | 5:18 pm GMT+7

Malaysia tightens control of social media

Malaysia tightens control of social media

Social media platform providers have been given a one-month deadline to respond to the code of conduct, after which they will be required to register with the Malaysian Communications and Multimedia Commission (MCMC) for licensing purposes, according to Malaysian Communications Minister Fahmi Fadzil.

Southeast Asia - Mon, November 11, 2024 | 4:05 pm GMT+7

Thailand pursues new policies to boost digital economy

Thailand pursues new policies to boost digital economy

The Thai Government is pursuing new digital policies to handle emerging security threats, including the impacts of US-China rivalry on the economy and technology, says Prime Minister Paetongtarn Shinawatra.

Southeast Asia - Mon, November 11, 2024 | 4:02 pm GMT+7

Japan’s Shizuoka Gas to acquire 25% stake in 50MW solar power plant in Vietnam

Japan’s Shizuoka Gas to acquire 25% stake in 50MW solar power plant in Vietnam

Japan’s Shizuoka Gas will acquire a 25% stake of My Son-Hoan Loc Viet Solar Energy JSC, the owner of 50-MW My Son-Hoan Loc Viet solar power plant in Vietnam’s central province of Ninh Thuan.

Energy - Mon, November 11, 2024 | 3:59 pm GMT+7

Vietnam central bank vigilant on inflation, cautious about credit risks

Vietnam central bank vigilant on inflation, cautious about credit risks

Vietnam’s central bank will manage its monetary policy in coordination with its fiscal policy to support economic growth, but it will stay alert about the return of inflation and take prompt action to curb it, says Governor Nguyen Thi Hong.

Banking - Mon, November 11, 2024 | 3:29 pm GMT+7

Vietnam’s first LNG-to-power plants set to connect to grid mid-Nov

Vietnam’s first LNG-to-power plants set to connect to grid mid-Nov

Nhon Trach 3 and Nhon Trach 4 power plants, the first LNG-to-power plants in Vietnam and located in the southern province of Dong Nai, are set to connect to the grid later this month.

Energy - Mon, November 11, 2024 | 2:28 pm GMT+7

Vietnam credit expands over 10% in 10 months

Vietnam credit expands over 10% in 10 months

Credit in Vietnam as of October 31 had grew 10.08% compared to the end of 2023, and 16.65% year-on-year, according to State Bank of Vietnam (SBV) Governor Nguyen Thi Hong.

Banking - Mon, November 11, 2024 | 12:09 pm GMT+7

Qualcomm earns $39 bln revenue, Vietnam 2nd biggest market

Qualcomm earns $39 bln revenue, Vietnam 2nd biggest market

American chipmaker Qualcomm earned a revenue of $38.96 billion in fiscal year 2024 (ending September 29), including 12% from Vietnam, the second-highest portion among all nations.

Companies - Mon, November 11, 2024 | 11:00 am GMT+7

Vinhomes spends $198 mln on record share buyback since start

Vinhomes spends $198 mln on record share buyback since start

Vinhomes, the largest housing developer in Vietnam, has spent some VND5 trillion ($197.82 million) on buying back its shares since it started its record-breaking plan on October 23.

Finance - Mon, November 11, 2024 | 9:25 am GMT+7

Vietnam moves up in global value chain with high-value investments: Savills

Vietnam moves up in global value chain with high-value investments: Savills

Vietnam's industrial sector is undergoing a significant transformation, attracting a "new wave" of high-value investments and the attention of leading global manufacturers and technology experts, says a Savills Vietnam report.

Investing - Mon, November 11, 2024 | 8:08 am GMT+7

KFC Indonesia shutters numerous outlets, lays off thousands of employees

KFC Indonesia shutters numerous outlets, lays off thousands of employees

KFC Indonesia, owned by Gelael and Salim Group under PT Fast Food Indonesia Tbk (FAST), reported a net loss of IDR557.08 billion (over $36 million) as of the third quarter of this year, resulting in the company’s closure of 47 outlets (as of September) and sack of 2,274 employees.

Southeast Asia - Sun, November 10, 2024 | 11:00 pm GMT+7

Indonesia eyes to become world’s palm oil price setter

Indonesia eyes to become world’s palm oil price setter

Indonesia’s Ministry of Agriculture has set a target of making the country the world’s largest palm oil producer by 2025, enabling it to influence global prices of the commodity.

Southeast Asia - Sun, November 10, 2024 | 11:00 pm GMT+7

Vietnamese broker ACBS sees profit surge, sustained capital support from parent bank

Vietnamese broker ACBS sees profit surge, sustained capital support from parent bank

ACB Securities JSC (ACBS) has reported a surge in both charter capital and profit, fueled by continued investment from its parent company, Asia Commercial Bank (ACB).

Finance - Sun, November 10, 2024 | 7:45 pm GMT+7